Three freelancers merging into one web design company — how do we decide on a name and equity split?

When registering with Companies House in the UK, it isn't enough for the exact name to be free. If there are similar registrations, the registrar will reject your application or you'll be forced to change it later upon objection. Run a similarity check on the official register before filing.

Two years ago, three of us merged in a similar way with 120,000 GBP in revenue, and our biggest mistake was doing a flat 33.3% split. When the sales partner stopped bringing in deals, the developer was grinding 12 hours a day while profits were split evenly. We had to dissolve the company in year two. Pay salaries for labor, pay dividends for equity from day one.

Don't turn naming into a creative pissing contest. Put together a whiteboard with the problems the agency solves and your target verticals. Give everyone three days to bring 5 names. Check domains and registry availability vote on the shortlist pick the winner, register it immediately, and get to work.

If your designer says 'I should pick the name, my portfolio carries us' and your dev says 'you're nothing without code,' this partnership is already in an ego trap before it even started. The hardest part of running an agency is putting the paying client in the chair. Any team that looks down on the person driving sales won't survive long term.

Do not skip getting a proper shareholders' agreement drafted when incorporating. It needs three critical clauses: 1) minimum weekly working hours committed by each founder, 2) a clear buyback valuation formula for early leavers, 3) explicit ownership of the company name and portfolio by the legal entity, not the individuals.

three equal shares looks great on paper until you hit a deadlock on a major decision... tbh at least spell out decision-making powers clearly in the agreement otherwise even a silly naming dispute will drag on for weeks.

How much of that 135,000 GBP revenue comes from recurring maintenance or marketing retainers versus one-off builds? When using past revenue to weigh equity, did you factor in the predictability of that cash flow?

Moving from solo freelancing to an agency setup is an awesome growth milestone, don't lose steam. Clashing over names and equity is totally normal; everyone just wants to feel their contribution is valued. Sit down, get expectations in writing with full transparency, and you'll get through it fine.

I've been down this road, let me tell you. Hasty decisions become decisions you have to fix six months later.

I'm also curious if anyone does it differently.

Don't miss this: Processes without records never improve because you don't know what to fix.

Just leaving this note, it might be useful.

I've been dealing with this for a long time. Most time waste accumulates in tasks waiting for approval.

Saved. A partnership without a payment schedule locks up at the first split.

I can't fully agree with this. The biggest time-waster for us was not knowing who had the final say.

Hope this helps.

i don't think this advice fits everyone. like mistakes made on the web design company names side are usually reversible but expensive.

of course it varies if your situation is different.

My question might sound amateurish, sorry about that... like a partnership without a payment schedule locks up at the first split.

If you post the result here, it will help others too.

The answer above hits the nail on the head. Taking notes for two weeks yields better results than a six-month estimate.

Of course, it varies if your situation is different.

Id appreciate it if you shared the outcome.

Three different views emerged, they all complement each other. I mean when making a decision, first look at what data you have on hand.

Correct me if I'm wrong.