Business Names Act for Partnerships
If you do not carry on business under the names of all partners, then you are using a trading name and the Business Names Act will apply.
United Kingdom
The main purpose of the Business Names Act 1985 is to enable customers and suppliers to know with whom they are dealing when a business operates in a name which is different from the partnership, i.e. different from the names of the partners who own the business.
Partnerships
There are two types of partnership – a general partnership and a limited liability partnership.
General Partnership
In a general partnership the partners have unlimited liability for all of the debts and obligations of the partnership together with the other partner(s) and also personally as individuals. (Or ‘jointly and severally’, to use the legal term.)
Note:
You don't have to sign up to a partnership agreement. You may be regarded as a legal partnership when two or more people work together in a business with the intention of sharing the profit. For example, a family firm comprising husband and wife, or father and sons, is often a partnership in the eyes of the law.
There are two ways in which partnerships carry on business under a trading name -
- A partnership can choose to operate under a trading name.
For example, Foster and Partners is the trading name of the partnership founded by the architect Norman Foster. - If you do not carry on business under the names of all partners - such as Crosby, Stills & Nash trading as ‘Crosby & Stills’ - then you are using a trading name.
Limited Liability Partnership
A limited liability partnership (LLP) has similarities with a limited company. You have to register the name at Companies House and there are restrictions on the words that can be used to make up the partnership’s name.
An LLP can use a trading name too, in which case it must comply with the Business Names Act.
Disclosure of partners/owners
General Partnerships
Every general partnership trading under a name other than the names of all the partners must display the names and addresses at which documents can be served individually on each and all of them.
The name of the partnership – such as Osborne & Ebel – and its trading name must be displayed prominently on the business premises.
The partners’ names and addresses must also be shown on all business letters, purchase orders, payments, invoices, receipts and written demands for payment.
If there are more than twenty partners, you do not have to put all the partners' names on your business documents, etc. However, you must show the address of the principal place of business and state that a full list of the partners' names and addresses can be inspected there.
The Act does not require you to publish the names of the partners on your website as well. However, the Ecommerce Regulations require certain information about your business to be shown on websites and emails too.
Limited Liability Partnerships
LLPs are not frequently encountered outside the largest professional firms. The legal position is very similar to that of a limited company.
Click here to learn about the legal position of Sole traders
Or learn about Limited companies
About the author:
Mac McInerny is a director of MC Management & Communications Ltd and topenterprise uk ltd. He has an Honours degree in Law and his formal training includes sales, marketing and financial and management accounting.
© 2008 Copyright topenterprise uk ltd
Property of topenterprise uk ltd and made available under the terms of use notice on this web site
topenterprise acknowledges the intellectual property right of the owners of the businesses named above.
Footnote
This article is intended to contribute to informed decisions by business owners, directors and managers. It does not constitute professional advice in all individual cases and should not be interpreted as giving specific advice or guidance.
Before making a decision to take any action you should make your own appropriate enquiries and seek legal, financial and other relevant advice from a qualified person or body. See terms of use for further information.
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Every general partnership trading under a name other than the names of all the partners must display the names and addresses at which documents can be served individually on each and all of them.
The name of the partnership – such as Osborne & Ebel – and its trading name must be displayed prominently on the business premises.
The partners’ names and addresses must also be shown on all business letters, purchase orders, payments, invoices, receipts and written demands for payment.
If there are more than twenty partners, you do not have to put all the partners' names on your business documents, etc. However, you must show the address of the principal place of business and state that a full list of the partners' names and addresses can be inspected there.
The Act does not require you to publish the names of the partners on your website as well. However, the Ecommerce Regulations require certain information about your business to be shown on websites and emails too.
Limited Liability Partnerships
LLPs are not frequently encountered outside the largest professional firms. The legal position is very similar to that of a limited company.
Click here to learn about the legal position of Sole traders
Or learn about Limited companies
About the author:
Mac McInerny is a director of MC Management & Communications Ltd and topenterprise uk ltd. He has an Honours degree in Law and his formal training includes sales, marketing and financial and management accounting.
© 2008 Copyright topenterprise uk ltd
Property of topenterprise uk ltd and made available under the terms of use notice on this web site
topenterprise acknowledges the intellectual property right of the owners of the businesses named above.
Footnote
This article is intended to contribute to informed decisions by business owners, directors and managers. It does not constitute professional advice in all individual cases and should not be interpreted as giving specific advice or guidance.
Before making a decision to take any action you should make your own appropriate enquiries and seek legal, financial and other relevant advice from a qualified person or body. See terms of use for further information.
Back to top of page
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