When considering how to structure your business in the UK, there are several options available. See our guide below – Is a limited company the right structure for your business?
One option worth considering is setting up a limited company. While it may seem daunting, it offers significant benefits compared to other business structures.
A limited company is a separate legal entity from its owners, which means your personal assets are normally protected if things go wrong. This concept, known as limited liability, is one of the major advantages of running a limited company.
Additionally, limited companies often present a more professional image, enhancing your credibility with customers and suppliers.
One of the key attractions of a limited company might be tax savings, but not always, particularly with the recent National Insurance reductions for sole traders, partnerships and LLP’s. Access to finance can however be easier as limited companies can issue shares to raise capital.
Despite these benefits, setting up a limited company comes with its challenges. There are legal responsibilities and administrative tasks involved. However, with careful planning and the right advice, these hurdles can be easily managed.
A Practical Guide
To help you navigate the complexities of setting up a limited company, we have developed an invaluable guide: ‘Running a Limited Company: A practical guide for business owners’.
This guide covers everything from the pros and cons of a limited company, considerations in choosing a structure, to the practicalities of setting up a limited company. It delves into financial flexibility, tax considerations, and the importance of getting professional advice.
The guide also provides insights into some of the less obvious benefits of running a limited company, such as the ability to protect your trading name and how being a separate legal entity makes it easier to transfer the business to someone else.
Is a limited company the right structure for your business?
In conclusion, while setting up a limited company may seem like a daunting task, the potential benefits, particularly in terms of tax efficiency and protection of personal assets, make it an option worth considering for any serious entrepreneur.
Don’t leave your business future to chance. Make an informed decision by downloading our ‘Running a Limited Company: A practical guide for business owners’ today.
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