New businesses typically fall into one of three types: sole trader, partnership or limited company. Each has its advantages, but if you want to grow your business significantly, shield personal assets from liabilities and employ staff, then forming a limited company is the best option. Registering and running a limited company involves more paperwork and accounting than a sole trader business or partnership, but this is offset with extra protections in terms of financial liabilities. Deemed to be its own legal entity, it can own property and assets, incur debts, sue and be sued but its finances are completely separate from the personal finances of its owners. This means that should the business fail, neither you nor the other owners can be held responsible for any of its debts.
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Private limited company - Wikipedia
See if your private limited company can get an audit exemption. For your first accounts and company tax return, things works a little differently. The first of your annual accounts are going to be more than 12 months because they start on the day you set up your Company, but ends on the last day of the month your company was set up. This end date is called the accounting reference date and is set by Companies House. So if you set up a private limited company on September 15, , your accounting reference date is going to be September 31, ! It means you will have two deadlines to pay what you owe. Below are the Company Tax rates from to to help you work out how much your Corporation Tax bill will be!
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We hope our article about choosing the right business structure in the UK was useful. There are two types of limited companies in the UK : private and public. Registering is actually the easiest part of creating a private limited company. There are two options : registering online or by post. The other option is to register by post.
A private limited company is a privately-held business entity. It is held by private stakeholders. The liability arrangement in these is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them.