ok here is the storie i will call the limited company company A and sole trader company B

currently company A has 2 directors and 1 secratery in the recovery trade we are working with a garage at the momment company B now we are wanting to MERG into one company but company B does not wont to loose his business name and company A does not wont to loose theres as they currently have a large business loan to pay etc..etc.. we wont to merg due to the fact we are paying 2 lots or bills for 1 building but can not get 1 insurance for 2 diffrent business names how would i go about this.

can Company A trade with company B

or does Company B trade with Company A?

were do i stand legaly

Unless the 2 companes are involved in the same activity I would keep them separate as it is very unwise to merge 2 activities from an accounting point of view, if nothing else. If your accountant/HMRC are happy with all the business going through one entity then why not use the registered name of the company for one business and a business name of the registered company for the other ?