Many IT contractors work via their own limited companies. There are a number of benefits to incorporating; we look at how the formations process works, and what it means to be a limited company director.
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
- Company Formation from £12.95 - visit Clever Formations
A Standard Industrial Classification (SIC) code is used to identify the business activity of your company, such as ‘Information technology consultancy activities.’
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.
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.
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.
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.
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 recruitment agencies and end-clients are unlikely to hire contractors who do not work via either a limited or umbrella company structure.
If you’ve chosen to set up as a limited company contractor, how much admin work will you have to undertake? In truth, there’s not as much ‘hassle’ as you might imagine, especially if you hire a good accountant.
Every private limited company and limited liability partnership registered in the UK is required to submit a confirmation statement to Companies House each year. So what does this statement contain, and how often must it be submitted?