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Protecting a trading name

A partnership protects its trading name using using a limited company of the same name.

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A partnership consists of A and B and they use a trading name called 'Acme Parts'. In order to protect the trading name A and B create a dormant limited company called Acme Parts Ltd. Pretty standard stuff happens all the time same.

Acme Parts gets into trouble with the local authority by creating a noise nuisance. The local authority serves a noise abatement notice on the Company Secretary of Acme Parts Ltd because the names of the partnership A and B are protected by data privacy law. The local authority says they can do this because the same people own both businesses. The partnership stops the noise nuisance.

Is Acme Part Ltd liable for the actions of the partnership and did the abatement notice served on Acme Parts Ltd create a legal relationship between the two making the partnership liable for Class 1 NI and Corporation Tax.

 

 

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By Tim Vane
07th Feb 2020 01:14

Ah, homework. Anonymous homework.

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By tom123
07th Feb 2020 08:35

Different laws, different reasons. Just because the council exercises these powers doesn't translate to tax authorities doing the same

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By tom123
07th Feb 2020 08:36

ACME: America Can Make Everything, or something else?

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Replying to tom123:
RLI
By lionofludesch
07th Feb 2020 09:29

Quote:

ACME: America Can Make Everything, or something else?

Something else.

From the Greek for highest point.

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By spidersong
07th Feb 2020 10:02

I suspect something else.

I suspect they were not so much influenced by ancient Greek as by Wile E. Coyote's frequent purchases whilst attempting to catch that darn Roadrunner.

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By baseline
07th Feb 2020 10:47

Quite educational. The existence of the same owners is really a paradox. How can the same people in two businesses be different as far as company law is concerned?

I tend to rely on a metaphor to help resolve the paradox. When A and B created Acme Parts Ltd the law notionally transferred owners A and B back to the partnership leaving a vacuum which was filled by clones. Two sets of people identical in every respect except they are different from each other.

Clearly this didn't cut it with the local authority they said they were exactly the same people because cloned humans don't exist? Unless you know different!

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By johnt27
07th Feb 2020 11:11

Why do people still believe this works?

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By spidersong
07th Feb 2020 13:55

Believe which bit still works? - prosecuting the wrong entity, or trying to get your homework done on AWeb.

Also on the original question if the local authority don't know who's in the partnership then how do they know they're the same people who own the Ltd. And if they know that can't they just look at the significant persons list and know who's in the partnership?

And if they know all that then the obvious solution is to just wire a speaker up to their front doors and blast the Birdie Song and I Should Be So Lucky on full volume at them from 2 in the morning until they stop being $*"&'s.

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By johnt27
07th Feb 2020 14:18

Protecting a trading name by registering a company - it doesn't

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By spidersong
07th Feb 2020 16:20

Yep my eyes had glossed over that, got too distracted by the other illogicalities in the situation and forgot to pay attention to the bits that do actually happen, even where there's no point.

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