COMPANY FORMATION AND SECRETARIAL DUTIES
There are a number of benefits in setting up a Limited Company, and if you are a sole trader/partnership, or just starting out in business, here are just a few you might like to think about:
Advantages
Limited Liability
As a sole trader/partnership your personal assets may be at risk if (perish the thought!) your business were to fail. You could even lose your home. The benefit of trading as a Limited Company is the limited liability of the officers and shareholders (provided the company is run legally and correctly in accordance with the terms of the Companies Act).
Tax
A company pays Corporation tax on its taxable profits (currently 19% for companies whose profits do not exceed £300,000), and is therefore not subject to the higher (personal) tax rates placed on sole traders/partnerships (40% for earnings between £50,001 and £150,000, and 45% for earnings above £150,000 ). It is also not subject to national insurance payments. There may also be other tax benefits which may be offset against Corporation tax such as monies spent on Research and Development, and Capital allowances (monies spent on premises and equipment).
In addition, there may be expenses that can be claimed as a limited company (but not as a sole trader/partnership) which will further reduce your tax liability.
Business Confidence
Operating as a limited company often gives customers and suppliers a sense of confidence in your business. In fact, some larger companies prefer not to deal with non-limited organizations.
Company Name Protection
Registering your company name with Companies House will ensure that name is unique to you. In other words, once you have your company name, no-one else can start a Limited company using the same name as you.
Ownership & Control
A limited company is a separate legal entity, and has a life beyond that of its directors and shareholders. It can easily be transferred/sold to someone else in the event of the current owner wishing to step down or retire, and it benefits from continued existence even in the event of the death of the shareholders/directors.
Disadvantages
We should perhaps also consider if there are any disadvantages……
Set up Cost
This is minimal, and Misan Assistance would be happy to set up your company for you for a small fee. Company formation can be completed in just a few hours!
More complex accounts
There are more complex rules governing limited company accounts and bookkeeping. However, Misan Assistance would be happy to go through these with you.
More responsibilities
You must submit an annual return each year to Companies House, and ensure that at all times information held by them about your company is accurate and up to date. You are also responsible for ensuring your accounts are submitted on time (by you or your accountant), and paying your corporation tax by the due date. We would advise you to check out your full responsibilities on the Companies House website.
HOW WE CAN HELP
We would be happy to look at your business and discuss if starting a Limited Company would be the right option for you. We can then follow this through in jut a few hours to have your Limited Company set up and all ready to go!
Call us today for your no obligation FREE initial consultation (up to 1 hour)
There are a number of benefits in setting up a Limited Company, and if you are a sole trader/partnership, or just starting out in business, here are just a few you might like to think about:
Advantages
Limited Liability
As a sole trader/partnership your personal assets may be at risk if (perish the thought!) your business were to fail. You could even lose your home. The benefit of trading as a Limited Company is the limited liability of the officers and shareholders (provided the company is run legally and correctly in accordance with the terms of the Companies Act).
Tax
A company pays Corporation tax on its taxable profits (currently 19% for companies whose profits do not exceed £300,000), and is therefore not subject to the higher (personal) tax rates placed on sole traders/partnerships (40% for earnings between £50,001 and £150,000, and 45% for earnings above £150,000 ). It is also not subject to national insurance payments. There may also be other tax benefits which may be offset against Corporation tax such as monies spent on Research and Development, and Capital allowances (monies spent on premises and equipment).
In addition, there may be expenses that can be claimed as a limited company (but not as a sole trader/partnership) which will further reduce your tax liability.
Business Confidence
Operating as a limited company often gives customers and suppliers a sense of confidence in your business. In fact, some larger companies prefer not to deal with non-limited organizations.
Company Name Protection
Registering your company name with Companies House will ensure that name is unique to you. In other words, once you have your company name, no-one else can start a Limited company using the same name as you.
Ownership & Control
A limited company is a separate legal entity, and has a life beyond that of its directors and shareholders. It can easily be transferred/sold to someone else in the event of the current owner wishing to step down or retire, and it benefits from continued existence even in the event of the death of the shareholders/directors.
Disadvantages
We should perhaps also consider if there are any disadvantages……
Set up Cost
This is minimal, and Misan Assistance would be happy to set up your company for you for a small fee. Company formation can be completed in just a few hours!
More complex accounts
There are more complex rules governing limited company accounts and bookkeeping. However, Misan Assistance would be happy to go through these with you.
More responsibilities
You must submit an annual return each year to Companies House, and ensure that at all times information held by them about your company is accurate and up to date. You are also responsible for ensuring your accounts are submitted on time (by you or your accountant), and paying your corporation tax by the due date. We would advise you to check out your full responsibilities on the Companies House website.
HOW WE CAN HELP
We would be happy to look at your business and discuss if starting a Limited Company would be the right option for you. We can then follow this through in jut a few hours to have your Limited Company set up and all ready to go!
Call us today for your no obligation FREE initial consultation (up to 1 hour)