If a sole trader (coach hire/travel business) wishes to form a limited company or LLP but the coach licences can only be in his own personal name how does he go about forming a LLP or limited co? He is interested in forming a LLP with both himself and the limited co as a member. The bulk of the LLP profits would be allocated to the limited company and CT paid thereon. This person is a HR taxpayer.
Comments appreciated
Replies (4)
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Licences need clarification
Plenty of coach operators have an operator licences in a Ltd Co name.
So why can't your client set up a Ltd Co and have an operators licence in the company name?
aia's for llp's
dont forget that if a llp has a corporate member, the LLP cannot claim AIA only the company.
Operator's licence
I agree with DMG bus. However, if for some reason the O licence must be in the name of an individual (not a company) surely still the business can be owned and run by the company with individual responsible for the licence obligations [check this].
What I am really getting at is that I hope client is not forming a LLP with the company just because of the O licence - unless (i) you are 100% sure this is the only solution, and (ii) the client will bear the adverse consequences of this structure.
Nominated TM
An bus or coach operator has to have a nominated transport manager (an individual). (a TM).
This does NOT mean that the entity must be a sole trader / partnership, just that there must be a reputable / responsible individual who ordinarily would hold a CPC (Certificate of Professional Competence).
Never have I seen any reference to a bus or coach operators licence being in an individual name, as I've studied the industry (and Traffic Commissioner cases) for several decades I suggest that some misunderstanding is going on here with the queriest's cient. Perhaps the client wants a convoluted set up and is justifiying it by these misleading claims about "can't have an operators licence in a Ltd Co name".
It is an absolute definite fact - many (probably most) bus / coach operators have an operators licence (OL) in the name of a Limited Company (Ltd or PLC).
If the client persists in the idea that "can't be Ltd Co" then it is questionable if they hold good repute or are worthy of holding an OL - if they can't understand the industry's licensing they shouldn't be in the industry.