Why Become a Limited Company
There are a number of benefits associated with becoming a limited company.
- The personal assets of both shareholders and directors of a limited company are not at risk should he company end up going out of business. Non Limited company members or sole traders would have no protection from receiverships or winding up petitions.
- Credibility for your business dealings with both customers and suppliers will improve if you are a limited company.
- There is also no chance of any confusion moving forward from commencement of trading. No two limited companies can have the same name.
- Limited companies are on average much cheaper to run with regards accounting fees and taxes. It is of course not always the case and you should take advice from an accountant before taking this point as fact regarding your own business.
- There are potential tax advantages for those high earners who wish to either keep money in a business or within a pension scheme.
- You can also protect a company name indefinitely, even if your company remains inactive for a lengthy period of time. Only limited companies can act in this way.
- Any further funding you may need to help your growth, or additional funding in the future for sustainability, is much easier to secure as a limited company, through shareholders or banks.
- Finally, ownership of a company can easily change hands through the process of selling shares.
If you require any further information please feel free to contact one of our advisors either via the contact form or phone.
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