Tax Advisors & Business Recovery Consultants | Phone: 020 8993 1867 - Free Tax Advice
Sagoo and Co. Chartered Accountants & tax advisors in London  

Limited Companies


One trading option for a business is to operate as a limited company. This will provide access to a number of tax planning strategies and limited liability status. Although there is perceived prestige in operating as a limited company you will lose some of your privacy – directors’ and shareholders' personal details and abbreviated accounts have to be filed and are open to public scrutiny.

A limited company is a distinct legal entity that is able to enter into contracts in its own name. The fact that the company is a separate legal entity from its owners is very important as it means that all the company's liabilities are the responsibility of the company - not that of the directors and shareholders!

The only exception is if you, as director of the company, offer a bank or other creditor a personal guarantee to repay the company's debt. In that instance you then become personally liable to repay the debt if the company is not able to.

So what are the pros and cons of incorporating your business?

Significant advantages:

bullet

Limited liability status - as explained above, the company is a separate legal entity and this can protect your personal assets from business creditors if for any reason the company is unable to clear all of its debts and has to cease trading. Operating as such is especially useful if there are significant risks associated with your business activity.

Significant disadvantages:

bullet

Possible double taxation - the company pays corporation tax on its profits and can only distribute the remaining profits, known as retained profits, to directors and shareholders. This can give rise to tax being paid by both the company and by the directors or shareholders when they extract money from the company.

bullet

More cost - the professional costs for setting up the company and for preparing company accounts and tax returns can be higher than those you would expect to pay if you were self-employed. There are then additional costs involved with various Companies House requirements

bullet

Audit requirement - If your company exceeds certain turnover limits, or is in a particular trade sector, an audit may be required thus incurring further costs. We can advise on this, but most small companies will be exempt from annual audits.

Needless to say, choosing the right business entity is not always an easy decision.

We are more than willing to discuss your individual requirements and undertake a proper risk assessment thus enabling you to decide on the best way forward for your enterprise.

Whether you proceed as a limited company or as an unincorporated business, our assessment will indicate the most beneficial tax arrangements available to you and help you to make sensible choices about how you can minimise your commercial risks.

Call us today 020 8993 1867 or drop us an email and we will call you back - info@sagoo.co.uk.

Find us


1st Floor,122 High Street, Acton, London, W3 6QX

Stations near: Acton Town, Acton Central & South Acton - busses: 207, 266 & 607 - MAP

Tel: 020 8993 1867


Opening Hours

Mon - Fri: 9.00-17.30
Saturday: 10.00-14.00
Sunday: Closed


Recommend Us

Share |

 

 
The Institute of Chartered Accountants in England and Wales Chartered Accountants in London | Company Accounts | Tax Returns | Bookkeeping Services | VAT Returns | Payroll / PAYE Services | Statutory Audits | Tax Planning & Savings | Start-ups / Company Formations | Sole Traders / Self-employed | Partnerships (LLPs) | Limited Companies (LTDs) | Contractors (IR35s) | Construction Industry (CIS) | Accountancy and Tax Resources | Client Testimonials and Feedback | Accountancy and Tax News | Contact Us - SITE MAP
Web projects in London
  Registered as CS Financial Solutions Ltd No. 5539135 by the Institute of Chartered Accountants in England and Wales
kate spade outlet louis vuitton outlet louis vuitton outlet Wolf Grey 3s sport blue 3s kate spade outlet michael kors outlet michael kors outlet louis vuitton outlet louis vuitton outlet michael kors outlet jordan 3 wolf grey Lebron 11 louis vuitton outlet Louis Vuitton Outlet lebron 12 Sport Blue 6s michael kors outlet louis vuitton outlet michael kors outlet