Which type of business structure should you use? A basic overview of how limited and umbrella companies work, and some of the pros and cons of using each structure.
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.
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.
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 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.’
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.
Running a company – what is a confirmation statement?
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?
How to close down / dissolve a limited company
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.
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 task related to corporate governance.
Choosing a name for your 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.
Being a limited company director – the basics
If you decide to start trading via your own limited company, you may at first be put off by the perceived ‘hassle’ associated with being running the company and becoming a director. However, if you hire a reputable accountant and undertake some basic administrative tasks, you should find that you can manage your company’s affairs […]
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