December 01, 2009 at 8:45 PM
The constantly changing tax system means that it is important to consider all your options when deciding whether to trade as a Limited Company.
We are regularly asked, ‘Should I incorporate my business?’ The reality is that there is no easy answer. Each situation has to be judged individually. As well as the obvious issues of tax and national insurance contributions (NICs), there are many other factors, such as:
- The business and your plans for the future
- Expected growth rates
- Commercial risk
- Administration (and cost)
- Your personal preferences
- Pensions and retirement planning
Advantages of incorporation
- Incorporation normally provides limited liability. If a shareholder has paid fully for his or her shares, he or she cannot normally be required to invest any more in the company.
- A company has its own legal status (separate from the shareholders & directors). It can own property, sue and be sued.
- You could save a considerable amount in tax!
We review these key areas when considering whether setting up a Limited Company is the best option:
- Potential Tax Savings
- Motor Expenses/Benefits
- Minimum Wage
- NI contributions
- Pension contributions and Life Assurance
- Obtaining mortgages & finance
- Other trading methods
- IR35 issues
- Property/Business Property Relief
- Shareholdings & Ownership considerations
- Long term plans & Exit Strategy
- Accounting Issues
Based on this in-depth discussion & analysis, we can help you decide whether incorporation is the best option for you.
For more start-up advice, click here
Call us for a further discussion on 0845 201 1582 or e-mail firstname.lastname@example.org