A business can be carried on through a Limited Company with the proprietors normally being both shareholders and directors. A limited company can also legally act with only one shareholder and director.
There are a number of reasons for operating through a limited company. There is the benefit of limited liability, so that an individual’s personal assets are usually protected. A limited company can offer greater status.
One of the principal reasons is that a company can be more efficient for tax and national insurance purposes and tax liabilities can be reduced by planning opportunities that are not available to unincorporated businesses.
Limited companies are inexpensive to set up.
However there are some disadvantages. The operation of a limited company is governed by strict company law which reduce flexibility and substantially increase compliance costs. Failure to ensure that a company operates within company law can have expensive consequence in adverse situations.
Information concerning ownership and some very limited financial details has to be filed annually with Companies House and this is placed on the public record so that it is available to third parties.
We have a wealth of experience in dealing with limited companies.
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