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Sole trader - trading name?

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  • 03-10-2004 1:26pm
    #1
    RicardoSmith
    Closed Accounts Posts: 8,264 ✭✭✭


    Any pitfalls in registering a trading name rather than your own, when working as a sole trader?


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    #2
    Victor
    Registered Users Posts: 78,371 ✭✭✭✭Victor


    No particular problems. Just make sure it doesn't come across as confusing, pretentious or anything like that.

    If trading in your own name, you don't have to register it. In your case "Smith" and "Ricardo Smith" (if tha tis your real name) don't need registering, but "Smith Trading" and "Smith Builders" would.


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    #3
    RicardoSmith
    Closed Accounts Posts: 8,264 ✭✭✭RicardoSmith


    I kinda think that a name and a brand is easier to market than a name if you are selling services of any kind. I also think that not using your own name is a little bit more discrete, when its not your full time job. It should also help to keep the accounting a little more defined. I assume you can have accounts and cheque books, credit cards in trading name rather than my own? I know at the end of the year it all has to be accounted for but it would help with the paperwork anyway.


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    #4
    dahamsta
    Banned (with Prison Access) Posts: 16,659 ✭✭✭✭dahamsta


    RicardoSmith wrote:
    I assume you can have accounts and cheque books, credit cards in trading name rather than my own?
    My accounts have always been done in my name t/a rbn. Ditto the bank account and credit card. I can't really think of any disadvantages.

    adam


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    #5
    RicardoSmith
    Closed Accounts Posts: 8,264 ✭✭✭RicardoSmith


    dahamsta wrote:
    ..my name t/a rbn....

    What does t/a rbn mean???


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    #6
    ur mentor
    Registered Users Posts: 237 ✭✭ur mentor


    only pitfall may be when customers try to find you. if the business you are in depends on word of mouth for most of its sources of contacts and funds, then it may be difficult for someone to remember your trading name as opposed to your real name. so if they look for you in phone book, then it may be diffficult for them to find you if you have an obscure trading name.
    however if you ever wish to sell the goodwill of the trading name it may be better to have a trading name rather than your own. it really depends on what the nature of the business is!! ;)


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    #7
    dahamsta
    Banned (with Prison Access) Posts: 16,659 ✭✭✭✭dahamsta


    RicardoSmith wrote:
    What does t/a rbn mean???
    Sorry. Trading/As Registered Business Name.


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    #8
    RicardoSmith
    Closed Accounts Posts: 8,264 ✭✭✭RicardoSmith


    dahamsta wrote:
    Sorry. Trading/As Registered Business Name.

    Ok thanks. What does the bank ask you for when you set up an account using your t/a rbn?


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    #9
    dahamsta
    Banned (with Prison Access) Posts: 16,659 ✭✭✭✭dahamsta


    RicardoSmith wrote:
    Ok thanks. What does the bank ask you for when you set up an account using your t/a rbn?
    Copy of the RBN cert.


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    #10
    madramor
    Closed Accounts Posts: 324 ✭✭madramor


    dahamsta wrote:
    Copy of the RBN cert.

    + usual id and address confirmation


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    #11
    Paddy20
    Closed Accounts Posts: 3,797 ✭✭✭Paddy20


    If you are entering a service industry. Imho a registered trading name that clearly relates to and makes clear to possible customers, the type of business service you are offering has distinct advantages.

    The name can also become like a trade mark if it is catchy and memorable, like Dynorod which eventually became a franchise operation. Or Securicor for instance.

    The advantage's of becoming a registered - Limited liability Company. Should also be considered, very handy if things should go bottom up. As it is the assets of the registered [Limited liability company] that debtors have to chase rather than you personally.

    At least that is how it was before I retired from business about 20 years back.

    N.B. Also never use your own home for bank security. If a business plan is worthwhile it should be able to raise capital on it's own merit's, without some bank wanting a hold on your home, as well as charging you interest for the risk.


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