& Co Accountants Ltd
Registration No. 8470501 Registered in England & Wales
of Institute of Financial Accountants
Studio 3, Longsight Business Park, Hamilton Road, Manchester, M13 0PD
Tel: 0161 224 3510
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Limited Companies: We provide a
range of services to Limited companies. We also provide advice on what to
think about when considering whether to set up such a business. We can help
with compliance issues, such as forming the company in the first place, getting
the company registered with HMRC, advice on setting up the company's accounting
records and preparing regular management accounts. We can prepare the yearend
financial statements and deal with tax requirements on your behalf.
We can also
advise on ways to mitigate tax and national insurance, especially for
owner-managed companies. Although there is perceived prestige in operating
as a limited company you will lose some of your privacy directors and
shareholders' personal details and abbreviated accounts have to be filed, and
are open to public scrutiny.
A limited company is an independent distinct legal
entity and artificial person that is able to enter into contracts in its own
name. This is important as it means that all the company's liabilities are the
responsibility of the company, not the directors and shareholders.
Following are few examples of advantages & disadvantages of Limited Companies?
Significant advantages: Limited liability means that's the liabilities of the directors and
shareholders are limited to the extent to their shareholding and
your personal assets are protected from business creditors if for any
reason the company has to cease trading and is unable to pay off its
debts. This protection is especially useful if there are significant risks
associated with your business entity.
Significant disadvantages: 1. Possible double taxation as the company pays its own tax on profits and
gains and any payout out of profit to the directors and shareholders can
be taxed again.
2. Management of company could be more expensive as compare to the sole
proprietor or partnership business as there are number of legal formalities
which company additionally required to fulfill towards the costs in
setting up, preparing accounts and tax returns for companies and costs in complying
with Companies House formalities.
3. Audit requirement there is requirements of audit of company accounts
if it exceeds certain limit which is an added cost.
We are here to help: Would a limited company be suitable for your business?
This is not an easy question to answer in just a few paragraphs but in
fact this is to be addressed & discussed in the specific & particular
circumstances on the case to case basis. We are happy to discuss your
individual requirements and assess your business needs. This will
enable you to make a balanced judgment on the best way to take your business
forwards. Be a limited company or unincorporated structure it should allow you
to take advantage of the most beneficial tax arrangements available to you, and
make rational choices about action that you can take to minimize your business
If you like to discuss further we are here to help, do
get in touch or call us now at 0161 224 3510