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  • #978796
    veseli
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    Hi Everyone,

    Just looking at best ways to protect my brand, and myself of course.
    If i register ‘veseli services’ business name, and ‘vsz express pty ltd’ company so everywhere i advertise i promote ‘veseli services’ but when i sign contracts with clients i sign it under the company ‘vsz express pty ltd’ trading as ‘veseli services’ now the questions are:

    1. Is this standard way of setting it all up?
    2. If ‘vsz express pty ltd’ goes bankrupt one day, will i loose ‘veseli services’ and will i be able to continue trading under ‘veseli services’ with the new company?
    3. If ‘vsz express pty ltd’ goes bankrupt will the previous clients or Insurance companies be able to recover any loses from ‘veseli services’ if it continues to trade?
    4.Isn’t this how all franchise companies work? you buy their business name for advertising purposes, but you actually start your own company, so they are protected if you stuff up?

    So far i’ve been trading under the company, but im expending and would like more protection of not loosing my brand name in the future.

    Thank you guys.

    #1109557
    Ashman
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    I would just register a company name which is also the name you want to trade under. If you want additional brand protection go to IP Australia and register your business name as a trademark.

    As a director of a company you have “limited liability”, which means if the company go backrupt you are not personally liable for the debts of the company.

    #1109558
    Divert To Mobile
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    as ashman said, to protect your name you need to trademark it.

    there is nothing wrong with having a company and trading as another name, just register the name and advise asic.
    But this offers no protection to what you want.

    Steve

    #1109559
    veseli
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    Thanks guys,

    So whats the point of registering a business name and a company name together if you reckon it has no protection?

    Every big company i saw has a well known business name advertised everywhere, and company name hidden somewhere with small letters for some reason, so im sure there is a way of keeping your brand if the company goes bankrupt? So my answer is probably to trade mark the business name.

    ‘vsz express pty ltd’ trading as veseli services (trade marked)

    So how safe is my veseli services if ‘vsz express pty ltd’ goes bankrupt?

    #1109560
    kathiemt
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    Why are you so focussed on ‘bankruptcy’? Isn’t it better to go into your business with the intention of making it work.

    I would highly recommend you speak to both an Accountant and a commercial lawyer about your plans to ensure you have the right set up and protection for your business.

    #1109561
    victorng
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    veseli, post: 121984 wrote:
    Thanks guys,

    So whats the point of registering a business name and a company name together if you reckon it has no protection?

    You register a business name because you have to. Read this: Why your business name is worthless. Nb the post was written before the change to national business name registration.

    You can structure your business in a way that tries to insulate your IP assets (including trade marks) from trading risk.

    Cheers,
    Victor

    #1109562
    veseli
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    • Total posts: 12
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    kathiemt

    Im working in the highest work injury industry in Australia, and that is Construction Industry. Please have a look at the statistic how many workers got injured last year, and how many builders went bankrupt then you will know why im so worried.

    victorng
    That link is useful.
    I want to build brand name, which i don’t want to loose no matter what happens in the future, so if i go bankrupt me or my wife can continue trading under that name. Now tell me whats the process of this? and how do franchise companies set this up? how come they never loose their brand, even though many of them went broke that bought the franchise.

    I’m sure i will be sued one day, and things wont go always well.

    So far no answers to any of my questions. :)(

    Yes i will see the account, but i though that there are people on this forum that can give me straight answer.

    #1109563
    MyGreatIdea
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    veseli, post: 121988 wrote:
    Please have a look at the statistic how many workers got injured last year

    That’s why you have insurance

    and how many builders went bankrupt

    I guarantee that it would be no higher percentage than a lot of other small businesses

    I want to build brand name, which i don’t want to loose no matter what happens in the future, so if i go bankrupt me or my wife can continue trading under that name.

    Firstly, I would suggest that if you went bankrupt then your brand would be damaged anyway

    Secondly, I’m pretty sure that if you’re the director of a company that goes into bankruptcy, that you won’t be able to continue trading under a business name owned by that company anyway

    I’m sure i will be sued one day, and things wont go always well.

    Why would you think that? Are you not a qualified, experienced builder? If you conduct your business properly I cannot see how you can assume that you will one day be sued.

    So far no answers to any of my questions. :)(

    There have already been several answers :confused:

    Yes i will see the account, but i though that there are people on this forum that can give me straight answer.

    Yes, there are plenty of people here who can help you. Some of them already have. The others probably aren’t spending their Sunday on the forum 😮 Wait until tomorrow.

    Wendy :)

    #1109564
    kathiemt
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    I agree with Wendy above and you didn’t answer me about an Accountant and Solicitor. You really should have both of those before you even begin trading.

    #1109565
    victorng
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    veseli, post: 121988 wrote:
    I want to build brand name, which i don’t want to loose no matter what happens in the future, so if i go bankrupt me or my wife can continue trading under that name. Now tell me whats the process of this? and how do franchise companies set this up? how come they never loose their brand, even though many of them went broke that bought the franchise.

    Franchisors own the trade marks not the franchisees. So the ownership of a trade mark isn’t affected by a franchisee who goes bust.

    veseli, post: 121988 wrote:
    So far no answers to any of my questions. :)(

    Yes i will see the account, but i though that there are people on this forum that can give me straight answer.
    You’ve got some pretty ‘straight’ answers so far. If you want all the answers straight away, I suggest you pay for some professional advice. If you want free advice from the forum, I suggest you be a bit more patient and polite.

    Cheers,
    Victor

    #1109566
    JacquiPryor
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    I want to build brand name, which i don’t want to loose no matter what happens in the future, so if i go bankrupt me or my wife can continue trading under that name.

    The only way you can be sure not to lose your name is to always conduct business properly, professionally and above board etc. Registration of the name as a trademark, as already pointed out offers protection of the name for whoever the owner of the trademark is. If you register the trademark under your Pty Ltd company name and the Pty Ltd goes bust, then the trademark will also be lost as it will be seen as an asset of the company.

    If the business name is first owned by the Pty Ltd and the Pty Ltd goes bust.. Your wife won’t necessarily be able to ‘continue’ trading under that name. The business name would be lost with the Pty Ltd and your wife would then have to re-register that name with her as the owner – it wouldn’t be a continuation. Further, if the Pty Ltd “went bust” and had a liquidator or administrator involved, they might choose to sell off the assets to the highest bidder – which could include trading names, domain names, trademarks etc.

    I really think your focus needs to be ensuring you are ready to trade a company and business that’s not likely to go bust to have the best chance at always ensuring your brand is in tact and protected.

    #1109567
    veseli
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    Thank you JacquiPryor and all the others. I do have a lawyer, accountant, licence, insurances, i have my company for 6 years now, turnover is 1m+
    I will repeat myself, i want to protect my brand. And no insurance does not cover the builder if he is still alive or trading, so its VERY easy to loose your brand, house, and family in building industry. So while im still trading i will recover costs from my pocket, and not the insurance! All you need is one project to go bad, and with today’s tough economy and small profit margins you loose it all very quickly. That’s why i need back up plans, and to set things up properly, for easy recovery later on.

    victorng
    Franchisors own the trade marks not the franchisees. So the ownership of a trade mark isn’t affected by a franchisee who goes bust.

    So is this my simple answer, register the business name and trade mark under my wife, that way she is the franchisor and if i go bust her name wont?? true?

    Im polite:)

    Thanks guys

    #1109568
    JacquiPryor
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    I still, personally, wouldn’t do the business name in your wife’s name… She would still then be responsible & liable for the trading business. If you proceed with a trademark in her name – this doesn’t make her a franchisor (franchises are a whole other set up) – but she could license the use of that trademark to your Pty Ltd company to use. You would need an appropriately drafted licensing agreement.

    You can structure your business in a way that tries to insulate your IP assets (including trade marks) from trading risk.

    Sounds like you need to speak to your lawyer or accountant for advice to follow Victor’s note above. You may, purely as just one basic example, have a separate entity registered and structured purely as a holding company for IP Assets – that company could then license your normal trading company or business, and anyone else the right to use the Trademarks and other IP yet they always remain the owner.

    #1109569
    veseli
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    Thank you JacquiPryor

    That’s the answer i need. It is possible, i new it was possible.
    I will open up new company under my wife, set up a name, trade mark it, write an agreement between us where she cant loose her name no matter what, and if in 10 years something happens to my company, she can continue trading under that name.

    And i can even buy some IPs under her company to insulate them from my business.

    Great idea, i will suggest this to my accountant.

    #1109570
    JacquiPryor
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    Yes, I certainly think accountant is best to help structure the company & business in the ‘safest’ way for your personal situation and assets etc.

    Just remember if your wife is the trademark owner, there needs to be a license agreement between her & any company or other person that may use that trademark. When you register a trademark you are basically agreeing that you have an honest intention to use that trademark – if your wife doesn’t use it then it may become vulnerable to removal. If she has a proper license agreement in place this will count as her ‘using’ the trademark so it won’t be removed.

    All the best with it :)

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