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A lot of people want to start up in business for themselves. However some people may start trading and not be fully aware of what type of business is best for their needs. It is worth considering the Benefits of Trading as a Limited Company to see if this is right for you. This article is intended as an introduction to give you an idea of how this type of business can be right for you.
Continuity is often a strong advantage in a business. With this form of registration you protect the name of your business. It means that this is not affected by the health or reputation of the shareholders.
One of the biggest is the difference between what happens if a sole trader or partnership gets into financial difficulties. In this instance there is no legal separation between the person who established the business and the business itself. This means that the sole trader or partners are liable for the debts that are accrued.
In a limited company the only thing that can be reclaimed are the assets of the business. The only thing the members are responsible for is any amount unpaid on their shares. This protection is often the most attractive advantage for people who want to make sure there property and other assets are secure when they invest in their shares.
It is famously said that there are two certainties in life, death and taxes. For a business this is a key issue. A sole trader or a partnership will pay income tax while a limited company only pays corporation tax on its taxable profits. This means there are more allowances and costs and so with the right advice it is possible to avoid a lot of taxes and save money.
Of the various Benefits of Trading as a Limited Company one that is often attractive is being charged corporation tax as opposed to income tax. This means that there are more ways of avoiding paying tax on costs that would not be possible in a partnership or as a sole trader. It is worth talking with a local independent financial adviser to see if this is appropriate for your business.
Continuity is often a strong advantage in a business. With this form of registration you protect the name of your business. It means that this is not affected by the health or reputation of the shareholders.
One of the biggest is the difference between what happens if a sole trader or partnership gets into financial difficulties. In this instance there is no legal separation between the person who established the business and the business itself. This means that the sole trader or partners are liable for the debts that are accrued.
In a limited company the only thing that can be reclaimed are the assets of the business. The only thing the members are responsible for is any amount unpaid on their shares. This protection is often the most attractive advantage for people who want to make sure there property and other assets are secure when they invest in their shares.
It is famously said that there are two certainties in life, death and taxes. For a business this is a key issue. A sole trader or a partnership will pay income tax while a limited company only pays corporation tax on its taxable profits. This means there are more allowances and costs and so with the right advice it is possible to avoid a lot of taxes and save money.
Of the various Benefits of Trading as a Limited Company one that is often attractive is being charged corporation tax as opposed to income tax. This means that there are more ways of avoiding paying tax on costs that would not be possible in a partnership or as a sole trader. It is worth talking with a local independent financial adviser to see if this is appropriate for your business.
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Get inside info on the benefits of trading as a Limited company now in our complete guide to company formation online and all you need to know about companies house company formation .
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