LIMITED COMPANIES: Benefits of being a limited company Significant advantages: •If your business has a larger than average element of risk then a limited company is a sensible solution. Why? If the company runs up debts or ceases to trade your own personal assets will not be required to fulfil any liabilities. This can be a considerable benefit for anyone going into business. This is termed ‘Limited Liability Status’. Disadvantages of being a limited company Things to bear in mind are the following: •Setting up a limited company can cost more and lodging accounts at Companies House involves more expense. With company accounts and tax returns a legal requirement, this is a costlier option than being self-employed. •There is a possibility of being stung for double taxation also. Why does this happen? Corporation tax is paid on profits generated and the residual profit can then be divided between directors and any shareholders. Therefore the company and the individual pays tax separately. •Once your company surpasses certain turnover figures an audit may well be called for. This is unusual for very small companies but it will cost money if required. What we can do for you Wherever you are in your thinking process, 123 Accountancy offers you both sound advice and every kind of accountancy service, which is just right for your situation. Choosing the most appropriate business entity is vital and can be confusing. Trustworthy and impartial advice is crucial and 123 Accountancy can offer a bespoke service for you, assessing tax arrangements and advising generally on your enterprise. We make every effort to ensure accountancy responsibilities are straight forward from the very start. So if you need assistance with Bookkeeping, Payroll, Tax Advice, Year End Accounts and/or VAT Returns talk to us now and see what 123 Accountancy can do for you.
Posted on: Mon, 24 Jun 2013 08:47:58 +0000
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