One of the biggest benefits of incorporating as a limited company is that it’s a relatively straightforward process that comes with lots of advantages. This is perhaps one of the most compelling reasons for opting to register as a limited company. It is also intended to be that way, in order to encourage entrepreneurship.
When you incorporate as a limited company, your business gains its own legal personality. This means that, for example, your company will be able to enter contracts with third parties. In addition, as we mention next, this limits the personal liability of those responsible for running the company and its founders.
One of the biggest benefits of incorporating a limited company in the UK is the limited personal liability of the people running the business. This means that even if your business faces financial or legal trouble, the personal assets of those responsible for the business will be afforded protection, so long that the directors have acted properly in running the company.
Depending on your circumstances, more often than not, registering as a limited company can have tax benefits. Limited companies pay corporation tax rather than income tax. This means you’ve got more options and flexibility when it comes to planning for tax.
As a limited company you’ll have more options when it comes to raising capital for your business. This is because you can sell shares to new investors. Plus, registering as a limited business will also open up access to some loans reserved for incorporated businesses. Speak to our business consultancy in Kingston upon Thames for more advice on this subject.
Even if there’s no actual difference between how your business runs, registering as a limited company is a great way to reinforce your business’ credibility and reputation. Probably the biggest reason for this difference in perception is that limited businesses are under more scrutiny than sole traders, for example. This is because of the requirement to adhere to more administrative procedures.
Incorporating as a limited company gives you the option to put pre-tax income into a company pension scheme, should you want to. As a business consultancy in Kingston upon Thames, we welcome enquiries to help you start your business successfully.
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