When it comes to structuring your business, there are several options to consider – one of which is to establish yourself as a limited company. But, is this a wise business move?
Ultimately, which structure you adopt depends on your circumstances, your objectives and existing tax thresholds; this means that not only will it differ person to person, but it could also change over time, as thresholds shift.
In our guide ‘Running a Limited Company: A practical guide for business owners’, we look at the key things you should consider when trying to determine whether incorporation is right for you.
We also briefly cover the alternative trading options and the important distinctions between them – in particular a limited company structure vs. sole trader.
To be able to make an informed decision about how you wish to trade you need to understand the pros and cons of each option; professional advisers, such as accountants and lawyers, can help you to recognise the risks and opportunities associated with each structure, and give you confidence in your choice.
If incorporation is the way forward for you, then our guide offers a whistle-stop tour of all that it entails, and expert guidance to give you the best chance of making your venture a success.
Limited company incorporation: The benefits and challenges
It might sound daunting, but operating as a limited company does have its advantages. A limited company is a separate legal entity from its owners, which protects your personal assets if things go wrong.
In addition, limited companies often present a more professional image, which can enhance your credibility with customers and suppliers, and make finance more easily accessible.
A limited company structure also comes with opportunities for tax planning, whether in respect of pensions contributions, capital expenditure, business expenses or extracting income.
Despite these benefits, setting up a limited company is not without its challenges. There are legal responsibilities and administrative tasks that come along with it.
With careful planning and the right advice these hurdles can be easily managed, which is why it is so important to know what to expect.
Download your copy of our guide: ‘Running a Limited Company: A practical guide for business owners’, which covers the practicalities of getting set up, the tax implications of running a limited company and the importance of getting professional advice.
Accountants for limited companies…
If a limited company structure is for you, our team of chartered accountants and business advisers in Cambridgeshire, Bedfordshire and Hertfordshire have the knowledge and experience to help you operate effectively and to make sound, informed decisions for the good of your enterprise and earnings potential.
We monitor legislative changes closely, which means we can ensure you are always compliant with the latest rules and utilising the newest reliefs.
On top of all that, we can relieve you of the administrative burden you may be fearing, allay any concerns you have about becoming a company director, and bring your ambitions within reach.
To discuss your requirements with us in more detail, contact us to arrange a free initial, no obligation consultation.
