Wednesday, 27 March 2013

Why Set Up a Limited Company



Listen to The MYOB Show


Our guest blogger Ed O'Neill from English In Newcastle will today look at why you may want to set up limited company and tomorrow Ed will explain How to set up a Limited Company.

Put a face to the name: Ed O'Neill from English in Newcastle

History:

During voyages to the Americas, wealthy individuals would create Corporations (Limited Companies) that would voyage to the ‘unknown land’ the Americas. If they found untold riches and wealth, they could keep it. If the ship sank, got lost or otherwise came a cropper, the wealthy individuals were protected as only the money they had invested in the ‘Corporation’ was lost. This article is about forming or ‘incorporating’ your own Private Limited Company in the UK. 


Decision:

Deciding to start a Limited Company can be a big decision and there is a lot of research that needs to go into deciding if it is right and how to do it. This article will cover the following points:

1. Why set up a Limited Company
2. My Step-by-Step guide to incorporation
3. What responsibilities you have as a Company Director


Why set up a Limited Company? What’s in it for me?

  • Looks more professional and provides a measure of ‘security’ to people you are doing business with.
  • If you are thinking of expanding it can make the process much easier, paying salaries etc. is all done through the company.
  • If the company goes bust you don’t go ‘down with the ship’ so to speak. In fact, the first ‘corporations’ were exactly that (see above).  


A note of caution though: If you want to set up as a Limited Company and you do all of the work yourself, either for one client or more then you may fall under the IR35 rules, this is a method the HMRC (UK Tax office) uses to prevent people avoiding paying income tax and National Insurance if they are acting like employees of a company. A rather dry introduction to these rules can be seen on the HMRC page on the IR35 legislation
 

Tomorrow I will explain how to set up a Limited Company in the UK for 15 Pounds in 15 minutes! 

Can it really be that easy and cheap?! Find out on tomorrows blog How to set up a Limited Company.

Also you may find the blogs 1st Step to Search Engine Success

By Ed O'Neill


Follow Me on Pinterest


No comments:

Post a Comment