Your limited company is a separate legal entity. Therefore, if the company is unable to pay its debts, the company may go into liquidation but your personal assets and wealth, outside of the company, are unlikely to be affected.
Tax Efficient
Companies can be more tax efficient. Utilising salary, dividends and tax year rules may result in reduced tax bills.
Company Director
You have the kudos of being a company director and owning a Limited Company.
Chance of Investment
Investors may be more prepared to invest in shares in a Limited Company, with Limited liability, rather than a partnership.
The Main Disadvantages
Additional Costs
As you have a separate legal entity, separate accounts and tax returns must be prepared, all compliant with the various Companies Acts and tax legislation.
Lack of Privacy
The accounts for the Limited Company, although filleted, must be placed for public viewing at Companies House. This is also the case for the information required on the annual Compliance Statement.
Profits & Losses
Profits and losses belong to the Limited Company. Directors or shareholders cannot transfer profits to themselves personally, unless distributed by salary or dividends.
Our Promise
We will always discuss with you the various options, advantages and disadvantages. Our objective is to be a part of your team. We will assist when required, offer advice when we see a need and provide friendly support.
