There are a number of benefits of registering and operating a limited company. Some of the main benefits and advantages are listed below:
1. Paying less tax – you may take home as much as 75% to 80% of contract income. All natures of business can benefit from paying a low salary and then extracting income via company dividends. These are substantial tax reductions when compared to operating as a self employed sole trader.
2. Limited liability – should something go wrong there is no risk to your personal assets. Only the limited company is liable for company liabilities, not you. Great protection for you.
3. Enhanced credibility – customers, clients and suppliers are often more confident dealing with a limited company due to a perceived enhanced professional image.
4. Sale of the business – a limited company provides a convenient exit route should you decide to build your business and then cash in from the sale of the company.
5. Potential investors – investors often put their money into a limited company rather than a sole trader. Equity shares in a limited company can be sold to potential investors.
These are genuine benefits that anyone who opens a limited company can benefit from.
All limited companies must submit accounts and company returns to Companies House and HMRC but that’s where we can help and we won’t charge you an arm and a leg for the privilege.
Here at CheaperAccountant.co.uk we can set up a limited company for you and complete all of your accountancy work for a low annual fee.