'Trading As' ...

[LDN]

I get the principle of a LTD co. being a seperate legal entity. I also get that a sole trader is an individual trading as 'x'. As well, I see a LTD co can trade as 'x'.

My question is; what defines the status of a 'trading as' company. Is it a bank account? Or can any individual / or LTD co begin trading as anything they want; and payments still be made to the individuals name or the LTD co name?

Example:

John Smith trades as 'JS1' but clients / customers pay money to John Smith (a seperate bank account wasn't set up for JS1). How is JS1 a company in any sense other than John Smith saying so...

Another example:

'Acme LTD' trades as 'Acme Consulting' and 'Acme Net'. But clients pay money to Acme LTD... what makes the 'trading names' anything other than just a front?

[LDN]

Eric Mc said:

It is a kind of "front" but it is not with any intent to deceive. It's just a form of branding.

So a LTD co or individual could trade under 30 different names with only one bank account. Clients to all activity under those 30 names pay into only one account (the individuals / or LTD co.s bank account).

[LDN]

Understood and thanks for feedback. I just wondered if I have many different facets - it'd be nice to have a trading as name for each 'arm' of what I'm doing. Without having to have bank accounts for each; just all under one umbrella.

[LDN]

I want to trade as numerous names but under one LTD co for the limited liability it offers. I don't want to open numerous bank accounts for my activities.

So if I personally own 5 properties, I don't want them at risk from any of my business activity and so a LTD co is the right way to go... correct? But - I want to trade as a few different names without having a bank account for each. There'd be one bank account in the LTD co name. Now, without having bank accounts for each activity, I'm not really 'trading' as that name; it's merely a name / brand being used for an activity; the trade part of the equation (exchange of money) would be the LTD co account.

I don't think Ive explained myself greatly. But in simple terms, how can one say that they are 'trading as' a name when any money being exchanged would never be in that name... it's not really trading as; so I suppose I'm trying to establish what is deemed as trading as.

If my activity is media related and I do music, web and film; I could set up a LTD co called 'Pistonz LTD' - I then want to use names for each activity - so 'Pistonz Music', 'Pistonz Web' and 'Pistonz Film' - I want to brand each of these names and invoices / letterheads would have their respective name on top - but all payments would be to the Pistonz LTD bank account. So are these extra names I'm using actual 'trading as' names or not?

[LDN]

Eric Mc said:

I think you are on the path to confusion and failure, to be honest.

I'm not on the path to confusion...

I've arrived!

Failure... not so much. Thankfully.

[LDN]

insurance_jon said:

I have a couple or 3 trading names as a sole trader.

I just filled a form in with the bank stating what the are, and the bank accept cheques made payable to each of them in the same account

Ah! Interesting; this setup may be what I am after and I will ask my bank about this. Thanks for the feedback everyone. Whilst Eric is right about keeping things simple. I also like things all neat and tidy and so I'd like arms to my LTD co. The above setup may be what I need.

[LDN]

Eric Mc said:

Are the three separate trading names indicative of three separate trades? That is the implication.

If that is the case, before you embark on this route, please check with your accountant regarding the Corporation Tax and Accounting Disclosure rules that limited companies have to follow when running separate and distinct trades through one limited company.

Noted.

[LDN]

Birkin1932 said:

I have one limited company with 6 different 'trading as' trademarked brands, all have their own dedicated websites, all money gets paid into that 'trading as' dedicated bank account and once a week it all gets 'brushed' into the Limited Co.

Easy peasy

This is exactly what I want to do - but without the each brand having it's own bank account. Could you not do the excat same but just have everyone pay into the LTD account direct? What is the purpose of have the seperate accounts in the first place? Purely for the look? Or admin?