Why Have a Limited Company?
Advantages
- The main advantage in having a limited company is the limitation in liability that it offers the investors and/or shareholders.
- Your customers may prefer to deal with a limited company as opposed to a sole trader and that may be a major factor in deciding to incorporate.
- It is easier for shareholders to enter and leave the company by virtue of the purchase or sale of shares.
- In an owner-managed company there are more tax planning opportunities to reduce your tax bill.
Disadvantages
- Company accounts must be placed on public record at Companies House. Smaller companies can currently lodge abbreviated accounts which comprise a Balance Sheet and certain notes. This prevents your competitors from seeing detailed results.
- Companies are governed by the Companies Acts and, as a result, there is a significant increase in the administration of a company compared with that of a sole trader or partnership. Care needs to be taken to ensure that directors comply with the legislation and we are here to provide guidance through the process.
- Penalties can be charged for late filing of accounts and tax returns. For more information on dates and deadlines click here.
More Information
If you decide that a limited company is for you or you would like to discuss this further, then contact:
Steve Mitchell This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Mairi MacIver This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Or call us on 01224 625111.