Business names and trading style

There is no longer a requirement to register a trading name. If the firm intends to trade under the names of all its partners, all your business stationery needs to reflect is your name and address and, if relevant, a VAT registration number. You must not use the terms “limited” or “plc” unless you have formed a limited company. You must not use the term “LLP” unless the limited liability partnership has been registered as Companies House.

The firm can, if it wishes, trade under any other style provided the name you choose is not offensive or designed so that you pass yourself off as someone else. If you do use a trading name which is not your own name your business stationery must carry the names of the partners or must specify as address in the UK at which a list of the names of the partners can be inspected. That list must be available for inspection during normal office hours.

Trading as a partnership is more straightforward than using a limited company. There are fewer regulations and any profits belong to the partners. The individual partners can get relief for losses personally. Partners are not taxed on the benefit of a company car and have more flexibility in running the business. The disadvantages are that the partners are is liable for the firm’s debts and some companies do not like to deal with partnerships because they cannot inspect accounts of the firm (unless the firm is a LLP).