Am I right in thinking that a limited company should only have one trade per company?
A limited Company (offshore contractor) wishes to run a general internet trading business incorporated within the limited company. Should this be treated as a sole trader or partnership seperately from the limited company.
The company directors are the contractor and his wife and the wife is buying and selling clothes on e-bay......
Would this help with IR35 at all?
Any suggestions and comments are be most welcome!
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Replies (3)
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What's a trade?
In general, a limited company can do whatever its Articles of Association say it can do (unless it's illegal, immoral or fattening). A garage, for example, can sell cars, mend cars, hire cars, sell tyres, sell groceries, run a carwash - all "different trades". The controlling director(s) can also amend the A of A to include some new idea if a generic clause to that effect is not already included.
This does not necessarily mean that it is WISE to run the 2 businesses together - that will depend on many specific conditions and you will need individual specialist advice, rather than the generic comments that you will get here.
Mind the VAT
Am I right in thinking that a limited company should only have one trade per company?
No.
OK as long as -
both or all the businesses trade in such a way that it is transparent with which entity people are dealing. So as long as all the statutory things, such as limited name, reg no, VAT No., etc. appear on all relevant stationery and web site(s) the trades can be 'Bloggs Ltd T/A Jo Bloggs offshore' and 'Bloggs Ltd T/A Mrs Bloggs Fashions'.