Have you considered how you might like to trade. The simplest options are as a sole trader or as a partnership, however for added security from creditors and scaleability a limited company might be a better option.
The pros and cons of operating through a limited company
- Minimising personal liability
- Professional status
- Tax efficiency and planning
- Higher personal remuneration
- Separate legal identity
- Credibility and trust
- Investment and lending opportunities
- Protecting a company name
- Splitting income
- Must be officially incorporated at Companies House.
- Required to pay a registration fee to Companies House to incorporate.
- Company name is subject to certain restrictions.
- Not suitable for undischarged bankrupts or disqualified directors.
- Required to disclose personal and corporate information on public record.
- More complex and time-consuming accounting requirements.
- May need to appoint an accountant to help you with your tax affairs.
- Strict procedures for withdrawing money from the business.
- A confirmation statement and annual accounts must be filed at Companies House each year.
- Must send a Company Tax Return and annual accounts to HMRC every year.
- Must adhere to strict record-keeping requirements, including taking minutes of meetings and recording all decisions taken by directors and shareholders.
- Number of company registers and records must be maintained and made available for public inspection at your registered office.
- If you make any changes to your company details, you must notify Companies House immediately.