Broadly speaking Limited Companies are the most tax-efficient structure to trade through. This is due to the relatively low rates of corporation tax and dividends. However, Limited Companies do put certain restrictions on you that other legal entities do not. In addition, there are tax traps that could cost you thousands if you fall into them.
Owners of Limited Companies are Shareholders but they also hold an office of the company as Directors. Shareholders receive dividends at the discretion of the Directors.
In a small limited company shareholder and directors are often one and the same but that is not always the case.
There are benefits of running a Limited Company…
- Tax is often lower if set up in the correct way
- Limited Liability – personal liability is limited to the assets of the business (although there are exceptions to this)
- Customer Perception may be that the business is bigger than it is
- Protection of your name and brand
Disadvantages of Limited Companies include…
- Lack of flexibility – bound by more rules
- More complaince – filings with companies house and hmrc
- Transparent – more open to the public
Our Limited Company Accounts Service Includes:
- Limited Company Accounts
- Corporation Tax Return
- Corporation Tax Planning
- Self-Assessment Tax Returns
- Confirmation Statements
- Tax Guidance