Configuring a company - advantages and disadvantages

So, you just win your first contract and your organization asking you for your UK company details. How do; are you setting up a limited company? How do you know if the route de la société anonyme is better than you, or a commercial alternative would be better? There are advantages and disadvantages execution of British companies. This is your personal situation, your career aspirations and the nature of your contract will help determine the right plans commercial option for you. You will also find that the decision is made with your hands, and that your organization or client insists that you set up a limited liability company until they even do business with you.

UK limited company benefits

The company is incredibly fast and cheap. You can register a limited liability company with businesses, the UK agency which regulates any Company Ltd. in England and Wales, a few hours to as little as a few dozen books country if using an online service. As an entrepreneur, you can benefit from significant tax benefits by trading through a ltd company. Most entrepreneurs pay a minimum wage and take profit of the company in the form of dividends, which can lead to much pleased net salary versus paid a salary of commercial alternatives.

You can request your own company Ltd., as the cost of execution of an Office at home with computers, software and hardware that requires legitimate company cooler subsistence expenses and the cost of travel training. And, as its name implies, a limited liability company can protect your personal assets, like your House, if the worst happened and a customer has decided to pursue your business.

Disadvantages of a limited liability company

Even if your company is a legal entity separate from you personally, you still functions, duties and responsibilities as shareholder and Director. This does not apply to contract through alternative trade option.

After that register you a limited liability company, you must send the annual accounts prepared by your accounting, annual reports and notifications of changes in equity and officers of the company, such as directors and Secretaries of the company at home businesses

Your UK company must also deposit a declaration of companies with HM Revenue and customs, the United Kingdom tax collection agency; Failure to do so can result in fines and even prosecution.

Evaluate the pros and cons before

Establishment of a limited liability company can offer you many advantages such as increased net salary, the opportunity to claim expenses enterprise and protection of clients looking for a scapegoat.

But some entrepreneurs feel the burden of paperwork, such as the statements of income, and responsibility for the execution of a business are too large and choose alternative options for the award of contracts.

Consider the advantages and disadvantages and consult with a professional, such as for example an accountant of the contractor, prior to making your final decision if an anonymous company registration is for you.