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 in-depth guides to setting up and running a company, try Limited Company Help.
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.
Almost all contractors who provide professional services to clients trade via their own limited companies, or join PAYE umbrella schemes. Here we’ve compiled a table to help compare the pros and cons of each structure.
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.
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’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 are several ways to set up your own limited company; via an accountant (a popular way), via a company formations agent, or direct with Companies House. Here we look at the typical costs associated with each option.
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.
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 the first time.