More tax efficient, limited owner liability, quick and easy to setup, better exit and succession strategies, there are many advantages to operating as a limited company which mitigate the perceived myths around cost and complexity.
Top reasons to become a limited company over other setups
Limited Companies may not be as common as sole traders, but they offer huge benefits when compared to other business models:
Limited Liabilities: There is a clear divide between your personal accounts and the businesses. This can help protect company directors from certain financial penalties where the responsibility lies with the business, not the individual.
Less Tax: Overall, directors will pay less personal tax than a sole trader, due to how tax is calculated on income, dividends, and national insurance contributions.
Pensions: It provides you with the option of setting up a director pension, a very tax efficient way of saving for the future
Cost: Traditionally many associate higher costs to setting up a limited company. This is no longer the case with many providers doing it for as little as £10, or even free when you take up other services
Perception: Some would argue that a limited company looks more professional than a sole trader. This varies from industry to industry but is worth considering. Would your customer have more faith in you if you were limited company?
So Why Don’t More People Register as Limited Companies?
The above leaves you with the question, ‘Why are more people not registering as a Limited Company?’. The main reason is it seems a lot more complicated than being a sole trader due to HMRC’s requirements to report on your company’s finances.
This is where we can step in. With our knowledge and experience we make these extra requirements negligible while also maximising your businesses tax efficiency to mitigate the costs of our services.
What we provide your limited company
We believe it is essential for you to focus on what is important in making your business grow. To achieve this you must use your time to focus on the areas of the business where your skills will have the biggest impact.
That is why we provide:
Your own dedicated accountant
Preparation for statutory year end accounts
Companies house and HMRC filing
Corporation tax preparation and filing with HMRC
Corporate tax planning and advice
Xero cloud accounting software
Up to two director’s self-assessment tax filing
Confirmation statement processing and filing
If you want to know more about the ways we can help your business run more efficiently and grow, then contact us via the form below.