One of the main attractions of contracting via your own company is that the liability of its shareholders is limited. So, to what extent is the liability of company directors limited?
Business Structures - Limited Company
Most professional contractors work via their own limited companies. It remains the most tax-efficient business structure, despite the April 2016 dividend tax hike.
Company directors have more paperwork and legal obligations than umbrella company contractors, but in reality, a specialist accountant can take care of these administrative duties for you.
- If you only have 5 minutes, make sure you read 10 things you should know before setting up a limited company
- How much does it cost to set up a limited company?
- Limited company basics - how to set up a company, and the responsibilities you have as a director
- Limited vs. Umbrella - find out more about the advantages and disadvantages of each business structure
- For in-depth guides to setting up a company, try Limited Company Help
Register a limited company - from £10.95
For a wide section of incorporation pacakges, visit Clever Formations
Members’ Voluntary Liquidation (MVL): a guide for contractors
If you’ve decided to close your limited company, a members’ voluntary liquidation is the most tax-efficient way to do it. Here we explain what an MVL is, and how the process works.
Limited company contractor guide
Many IT contractors work via their own companies. We look at how the formation process works, and what it means to be a limited company contractor.
Limited companies – what are SIC codes used for?
A Standard Industrial Classification (SIC) code is used to identify the business activity of your company, such as ‘Information technology consultancy activities.’
Why your limited company might need a shareholders’ agreement
If you decide to set up a limited company with other people – either for contracting purposes or to run another type of business, how do you ensure that all of your shareholders (including yourselves) are protected in case something goes wrong? A well-drafted shareholders’ agreement might be the answer.
What is a Certificate of Incorporation?
When you register a company in the UK, once your application has been processed and approved, Companies House will send you a formal certificate of incorporation.
What are statutory records, and why should you maintain them?
If you’re running your own limited company, there are a number of records the directors are obliged to keep. Here we explain what these registers are used for, and what types of information they contain.
Dormant limited company guide for contractors
There may be good reasons why you want to set up a company, but not necessarily trade for the time being… or you may decide to take a break from contracting, but keep your company ticking over. Here we explain what a ‘dormant’ limited company is, and what responsibilities you have as a company director.
Managed Service Company legislation – how does it affect contractors?
A recent case has highlighted the impact of the MSC legislation on the contracting industry. How can you ensure that you are not involved with an MSC provider – who is effectively controlling your limited company?
Why it is hard to secure contract work as a sole trader
Why recruitment agencies and end-clients are unlikely to hire contractors who do not work via either a limited or umbrella company structure.