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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11139
Experience:  30 years as a practising solicitor.
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My husband and myself run a small business but I would like

Customer Question

My husband and myself run a small business but I would like to come out of the business due to health problems. We have a family member who would like to come into the business as an equal shareholder with my husband and take over my part. However, the money that is already in the company will need to belong to my husband and myself. The family member is a very good businessman and would be an asset to the company, he can afford to pay £125,000 to become a partner. However this would not be enough money to pay my share and I also do not want to take all of my money at once as this would cause me to pay very high taxes. We thought it would be best for us to stop trading as our original company and then start up a new company with both my husband and other family member as equal partners. The other family member will put up the funds (£125,000) and my husband will bring in the existing business as his contribution. As we would not be closing down the existing company, just not trading anymore and we can then draw the money out as needed, can we use the existing name and logo or would this all need to be changed.
Submitted: 8 months ago.
Category: Law
Expert:  JGM replied 8 months ago.

You can use the name and logo. As regards ***** ***** that is not an issue as you and your husband as the owners of the first company simply grant a licence to the second company to use the logo. As regards ***** ***** you can do one of two things. With the consent of the first company, A Limited, the second can use the first's name as a trading name, e.g., B Limited trading as A. Alternatively A Limited and B Limited can swap company names so that A Limited becomes B Limited and vice versa. Each company retains its original company number so they are same entities as before but with a name swap. That is quite common in take over and mergers. I hope that helps. Please leave a positive rating so that I am credited for my time.

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