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Thread: Two different types of sole proprietor businesses on my name?

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    Question Two different types of sole proprietor businesses on my name?

    Hi;

    I have a question regarding having two different types of businesses as sole proprietor and how to do accounting and run them. For example one being a beauty salon and the other washing cars. (Just examples)

    I dont think it is feesable for me to open a cc due to the costs involved in running it and my current income from sole proprietor business isnt enough yet.

    1st question - Is it possible/legal to have 2 on my name?
    2nd question - If it is indeed possible, how would one do the accounting - as one business or as the two seperate ones (bearing in mind its in my name)?(ie. seperate invoicing etc. or the same)
    3rd question - When submitting a tax return it requires one to enter a "code" for the type of business (industry) what would l enter here if I have 2 different types???

    Thanks for taking the time to read my questions

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Entrepreneurgal View Post
    1st question - Is it possible/legal to have 2 on my name?
    Yes, although in terms of the new Consumer Protection Act you need to register a defensive trading name for each with CIPRO.

    Quote Originally Posted by Entrepreneurgal View Post
    2nd question - If it is indeed possible, how would one do the accounting - as one business or as the two seperate ones (bearing in mind its in my name)?(ie. seperate invoicing etc. or the same)
    It would probably make sense to keep separate books of account for each, although being sole proprietorships, they're actually not seperate legal entities.

    I've got no idea when it comes to Q3 (I haven't done my own tax return for ages - in fact perhaps never )
    The trouble with opportunity is it normally comes dressed up as work.

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    Quote Originally Posted by Dave A View Post
    Yes, although in terms of the new Consumer Protection Act you need to register a defensive trading name for each with CIPRO.
    Dave, does this have to now be done for all "T/A" business names? I hadn't heard that you now had to register these, but could easily have missed it.

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    Site Caretaker Dave A's Avatar
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    AFAIK, not only does it apply to sole props; this also applies to companies and close corporations too if their trading name differs from their registered name with CIPRO.

    I picked it up in a summary somewhere - I think off the DTI website.
    The trouble with opportunity is it normally comes dressed up as work.

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    Thanks Dave for taking the time to read and answer my questions!

    I also didn't realise that I had to register my "trading as" name now. Anyone know of anyone that can do this for me swiftly? I have downloaded the CM5 and CM8 forms but im not sure how I should fill it in...(Point A is especially confusing)

    I have been reading through the act and Im not sure what “defensive trading name” means – is that what I am doing?(I am Joe Soap t/a Soapsuds.) Would it be necessary to register if I start trading under my name from here onwards? (ie. Joe Soap)
    I have used my trading as name for quite a few years now....

    I would like to register another business that I am starting up as well (also sole proprietor). So the decision is still to be made whether I will be registering one or two

    May I also ask if it is true that CC’s are soon going to become obsolete?

    Thanking you in advance and looking forward to hearing from you.

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    Site Caretaker Dave A's Avatar
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    I think this document on the CIPRO website has relevance (and deals with BusFact's query too).

    Perhaps a point to consider is when reserving a trading name (which I suspect must be linked to a CIPRO company registration), it looks like the work only needs to be done once. When registering a defensive name, the registration has to be renewed every two years.

    Part 2.b. of that same document does raise an interesting point. Is CIPRO hinting at a legal clash between Acts here?

    @Entrepreneurgal - If you read between the lines you might gather I don't have all the answers.
    The trouble with opportunity is it normally comes dressed up as work.

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