Sole traders working under a Heads of Agreement.

Thelonious

Myself and two other sole traders are planning a business venture. We intend to split the ownership of this venture according to a ratio as follows;

15%
42.5%
42.5%

The day to day running of this business venture will be decided based on how the shares are divided. We

We intend to operate under a single trading name which will be registered to one of the three parties.

We also will need to set up a business bank account in the name of the trade name which all three members of the venture will have access to.

If anybody could post an example document I'd be very grateful.

pedroeibar1

What you are suggesting is plain wrong. A sole trader is simply that – sole, i.e. you or him/her. The trading name is not a legal entity, it has no legal status. What you are discussing is a company, because you mention ‘shares’ and in the alternative what you are suggesting could actually be construed as a partnership, which is something you do not want. I suggest you form a Ltd Company and have a shareholder’s agreement that specifies who does what, when and where. It should also specify where the individual (not collective) responsibilities lie, among other things. A solicitor would draw it up for you; from what you’ve written you could not write a meaningful or enforceable one yourself.

Thelonious

Thelonious wrote: »

Myself and two other sole traders are planning a business venture. We intend to split the ownership of this venture according to a ratio as follows;

15%
42.5%
42.5%

The day to day running of this business venture will be decided based on how the shares are divided. We

We intend to operate under a single trading name which will be registered to one of the three parties.

We also will need to set up a business bank account in the name of the trade name which all three members of the venture will have access to.

If anybody could post an example document I'd be very grateful.

This is total madness, and Im not exaggerating.

If theres three of you starting a business, scrape up the 400 quid it cost to start a Ltd company.

terryhobdell

Loopy start a company