Limited companies have been around for several centuries and were typically used to fund new ventures such as overseas colonisation / exploitation.
The rules governing companies were fairly loose compared to today’s regulations and after several court cases in the 19th century, the modern shape of companies started to appear.
The modern company involves directors who run the company and the shareholders who share in the eventual profits. The shareholders are the ultimate owners and controllers of the company and can hire and fire directors as and when they choose.
The limited company also offers limited liability to the directors and shareholders in cases of business failures and debt. However, this protection must be considered carefully as in some cases, it can be removed by the courts leaving directors and in some cases shareholders personally liable.
Whilst these liability issues are serious, one must not be overly worried or deterred by them as setting up and operating them following advice from a Qualified Accountant will ensure that the company’s affairs are managed within the confines of the Companies Act 2006 and other relevant regulations.
If you are contemplating a new business or have already started one as a sole trader / partnership, we can help you to determine whether it is beneficial for you and whether it will be tax efficient. It is beneficial, we can incorporate the company through our site.
So why not use this opportunity to call us on 01252 375 466 for a FREE consultation to discuss the merits of your business operating as a limited company?
It is easy for an existing businesses to just transfer the trade over to a limited company, but we would urge caution here as follows:
- You will need to decide on who is going to be a shareholder?
- Do you want to involve your husband / wife / other people?
- How are you going to transfer the existing business?
- What impact will it have on your day to day operation?
- Can disruption be avoided?