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.
- 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 more in-depth guides to setting up and running a limited company, visit LimitedCompanyHelp.com.
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?
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 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?
A Standard Industrial Classification (SIC) code is used to identify the business activity of your company, such as ‘Information technology consultancy activities.’
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?
If you have decided to trade via your own limited company, you have to submit an application to Companies House, the registrar of companies. Here, we’ve listed 10 bits of information you need to collect in advance to ensure your formation can be processed correctly first time.
As a limited company contractor, you can choose to voluntarily shut down your company and remove it from the Companies House register. This means the company will cease to exist and you won’t face any more administrative duties or running costs for the business.
Company secretaries are usually appointed to help directors complete their statutory duties and carry out other task related to corporate governance.