Choosing a Business Name as a Sole Trader in the UK

Summary

• As a sole trader, you can trade under your own name or a branded name, but must display it on all official paperwork using the “T/A” format where applicable.
• Certain words are restricted from use in business names, including “Ltd,” “PLC,” “Royal,” and offensive terms.
• Registering your trading name as a trade mark with the Intellectual Property Office is the most effective way to protect it legally.
• This article is a plain-English guide for sole traders in the UK on choosing and protecting a business name.
• The content is produced by LegalVision, a commercial law firm that specialises in advising clients on business structures and sole trader matters.

Tips for Businesses

Search the Companies House register and the IPO trade mark register before settling on a name. If you use a branded name, apply the “T/A” format on invoices and tax returns. Consider registering your trading name as a trade mark early to prevent others from using it.

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On this page

• What are Sole Traders?
• Initial Steps When Choosing Your Business Name
• Using Your Own Name as a Sole Trader
• Protecting Your Business Name
• Key Takeaways
• Frequently Asked Questions

When starting a business as a sole trader in the UK, you will need to consider your business name. Choosing a business name can be a fun and creative process and allows you to put your stamp on your new venture. There are, however, several considerations you should bear in mind when deciding on your business name to avoid future problems. This article discusses the best methods to choose an effective business name and easy mistakes to avoid.

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What are Sole Traders?

Sole traders are individuals who run a business as individuals in a self-employed capacity. As a sole trader, you will have to register with HMRC and complete a self-assessment tax return every year. You will benefit from any profits accrued from your business after paying taxes, but you will also be responsible for losses. Sole traders are fully responsible for the running of the business, including day-to-day operations and record-keeping.

It is essential to note that any revenue generated by a sole trader will be considered taxable income. A sole trader will be personally liable for any contracts they enter into during the course of carrying out their business.

Initial Steps When Choosing Your Business Name

Generally, you have a lot of flexibility when choosing a business name, though there are a few restrictions to note. For one, you want to avoid naming your business the same as (or similar to) a competitor. Choosing a unique name not only allows your business to stand out in your marketplace but also saves you from potential trade mark infringement. Additionally, there is a need to rebrand if a claim is brought against you for trademark infringement.

You can use the Companies House register to search business names that are limited companies, which can be useful when trying to avoid duplication. You can also use the trademark register through the Intellectual Property Office to search for existing registered trademarks. 

Using Your Own Name as a Sole Trader

A sole trader business can trade using their own name, such as Paul’s Plumbing, Bill’s Bakery, or Georgina’s Gym. Using your own name as your trading name is fairly common for sole traders. 

Whatever you choose to name your business, you will need to include this name and your business address on all official paperwork. Notably, ensure your new business name: 

• is not offensive in any way;
• does not include the words ‘limited’, ‘Ltd’, ‘limited liability partnership’, ‘LLP’, ‘public limited company’ or ‘PLC’;
• does not contain the word ‘Royal’ or suggest any connection to the monarchy;
• is not the same as any existing trade mark;
• does not contain words associated with the government unless consent is granted; or
• does not contain sensitive words.

Protecting Your Business Name

Unlike registered companies, there is no requirement to formally register your sole trader name. Without legal protections in place, it can be challenging to protect other businesses from using your name.  

One method of protecting your business name is registering it as a trade mark with the Intellectual Property Office. You will need to meet the legal requirements of the trade mark application system. Once you register your business name as a trade mark, you can control how people use your business name. Likewise, you can take legal action against people who use your business name without your permission. 

Key Takeaways

When deciding upon a business name for your sole trader business, you have a great degree of flexibility. You can trade under your own name or create a branded name that suits your business. Companies House and the trade mark register are useful for checking any names you have in mind to avoid duplication.

You will also need to take care that you avoid anything offensive within your business name. As a sole trader, you will be obliged to submit a self-assessment tax return and must include your business name on any official paperwork.

LegalVision provides ongoing legal support for businesses through our fixed-fee legal membership. Our experienced business lawyers help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 0808 196 8584 or visit our membership page.

Frequently Asked Questions