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.
Business Structures - Limited Company
Most professional contractors work via their own limited companies. It remains the most tax-efficient business structure, despite recent increases in dividend tax and Corporation Tax.
Company directors have more paperwork and legal obligations than umbrella company contractors, but 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
How much ‘hassle’ is involved in running a limited company?
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.
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.
Choose a name for your limited company – the basics
How to choose a professional, unique name for your company. We look at the rules and regulations which govern company naming, and why contractors may benefit from securing a matching web address.
What is a company secretary, and do I need one?
Company secretaries are usually appointed to help directors complete their statutory duties and carry out other tasks relating to corporate governance.
Being a limited company director – the basics
When you become a limited company director, you take on a number of duties and responsibilities. This may seem a bit onerous at first, but you will soon be able to manage your company’s affairs with ease.
Limited company registered address – what are my options?
When you apply to Companies House to form a company for the first time, you’ll have to provide a number of addresses, the most important one being your registered office address. What can you do to protect your privacy?
Limited company or PAYE umbrella – advantages and disadvantages
Almost all contractors who provide professional services to clients trade via their own limited companies, or join a PAYE umbrella. Here we’ve compiled a table to help compare the pros and cons of each structure.
Forming a company – Articles and Memorandum of Association
If you want to form a new company, alongside the Companies House application itself (IN01), you must also file Articles and a Memorandum of Association. Here, we explain what these documents are, and how to submit them.
In what sense is your liability limited if you run a company?
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?