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Company formation

What business structure should I trade through?

SOLE TRADER

PARTNESHIP

LIMITED COMPANY

 

Our Company Formation clients enjoy full accounting service support and consultation if required

 

Sole Traders

This is a small form of business to start if you carry on business on your own account, but is generally only suitable for very small business.

 

Main advantagesMain disadvantages
  • If full accounts are not required,accountancy fees and other compliance costs will be kept to bare minimum; however, once profits reach a certain level the tax savings of incorporation will outweigh any additional compliance costs.
  • Losses incurred by a sole trader can be offset against other income to obtain a tax refund or deduction.
  • A sole trader’s liability for business debts is unlimited.
  • Income Tax and Class 4 National Insurance is due on all profits,whether drawn or not.
  

 

Partnership

A partnership consists of two or more persons carrying on business together, and the individual tax liabilities are calculated in the same way as for sole trader.

It is important to note that the partners are all jointly and severally liable for partnership debts, and each partner is solely liable for the tax and National insurance on their share of profit.

LLPs do not have directors or shareholders, but can have two or more partner. Partners should be appointed at the point of registration or later.

Limited Liability Partnership is treated like a normal partnership for tax purposes but the members of the partnership have the protection of Limited Liability.

The advantages and disadvantages of a partnership are similar to those of a sole trader.

 

If you register LLP with us you will receive:

EACH ONLINE REGISTRATION PROCESS

PRICES WITH NO HIDDEN COSTS

FASTER REGISTRATION THAN ON THE COMPANIES HOUSE

ALL STANDARD DOCUMENTS TO START TRADING IMMEDIATELY

FREE SUPPORT AND ADVICE

 

Choose from our partnership formation packages:

Silver LLP Package£30

Gold LLP Package£65

Platinum LLP Package£200

Government fee included

Certificate of Incorporation

Same day formation

Partnership agreement

Membership Certificates

Combined Register

Government fee included

Certificate of Incorporation

Same day formation

Partnership agreement

Membership Certificates

Combined Register

20% off first set of accounts

First Minutes

Combined Company Register

Registered address service for 12 months

Government fee included

Certificate of Incorporation

Same day formation

Partnership agreement

Membership Certificates

Combined Register

20% off first set of accounts

Free Confirmation Statement Filing Service

First Minutes

Combined Company Register

Registered address service for 12 months

LLP Company Embossing Seal

Red Wafers

 

 

LTD Company

Low prices guaranteed

Fast same day company formation

Full expert support before,after and during registration process

 

A limited company is a separate legal entity from its owners and is governed by company law. It must have at least one shareholder (owner of the company) and ta least one director (directors are responsible for its management). Shareholders do not have to be directors, or vice versa.

Importantly, the liability of its owners for business debts is limited to the amount of any sum that is unpaid on share capital, and this will usually be nil or negligible.

A company pays Corporation Tax on its profits, and can make payments called dividends, which are free of National Insurance contributions and can therefore be a very tax efficient reward to shareholders.

 

Main advantagesMain disadvantages
  • Significant tax advantages, because profits are taxed at Corporation Tax rates which are a lot lower than the higher rates of Income Tax
  • The liability of its shareholders is limited to the amount unpaid (if any) on any share capital they own €“i.e., the in event of company failure,shareholder’s personal assets are protected. This may be especially attractive for a non-director shareholder, who would like to invest into the company but has no control over the day to day management.
  • A limited company has better borrowing potential than an unincorporated business because it can use current assets as security by creating a floating charge over its assets.
  • The documentation for company formation and governance is generally cheaper to produce than the equivalent for a partnership.
  • Changes in ownership is very flexible and straightforward to effect.  Amongst other things, this will help attract investment and facilitate exit planning.
  • A limited company may appear more credible and substantial.
  • Your annual accounts, and other information about the company,have to be filed at the Companies House and are available for public inspection(although in practice the information filed is very limited in case of cost companies).
  • I can be costly and complicated to wind a company up.
  • Accountancy fees can be higher than for a sole trader because there is more paper work to deal with (although there is little difference if the sole trader or partnership requires full accounts to be prepared).
  • Any losses made by the company cannot be used against the owner’s other income.
  

 

Choose from our LTD Company formation packages:

Silver Ltd Package £18

Gold Ltd Package £56

Platinum Ltd Package £120

Ready to use company in 3 hours

Companies House Fee is included

Full company formation pack includes Certificate of Incorporation,Memorandum of Association, Articles of Association,Combined Register with first entries, First Minutes, Share Certificate

All above documents are sent via email

Free consultation on the type of company

Free registered address service for 12 months

Ready to use company in 3 hours

Companies House Fee is included

Full company formation pack includes Certificate of Incorporation,Memorandum of Association,Articles of Association,Combined Register with first entries,First Minutes,Share Certificate

Free consultation on the type of company

Free registered address service for 12 months

£55 Cashback on the first year of accounting service

Annual Return Filing Service

Free Tax Agent Service

Ready to use company in 3 hours

Companies House Fee is included

Full company formation pack includes Certificate of Incorporation,Memorandum of Association, Articles of Association,Combined Register with first entries,First Minutes, Share Certificate

Free consultation on the type of company

Free first consultation of our accountant

Free registered address service for 12 months

£55 Cashback on the first year of accounting service

Annual Return Filing Service

Free Tax Agent Service

Free VAT registration

 

 

Business Splitting

Finally, it is possible to split a business into two; one part running as a limited company and one as a sole trader/partnership to get the best of all worlds; however, the split must be considered very carefully to avoid foul of the tax authorities.