Limited Company Benefits
Many small businesses, sole traders and start ups will set up their companies as limited companies. They will generally do this to tap into a range of advantages and benefits that make running their business easier.
At the very least, registering your company as a limited company can make it easier for you to do business with other people as they are more likely to trust you and to take you seriously. And, many larger organisations simply do not do business with smaller companies that are not registered in the first place.
Other benefits of operating as a limited company include:
- You will have limited liability (as long as you conform to the regulations set up by Companies House and operate a legal business) which means that your own assets cannot be used if the business fails or gets into problems with debts. Other types of business options leave the business owners personally liable for debts if their business goes under.
- You will be given higher taxable income thresholds as a limited company and you can make other tax savings such as those given with dividend payments which do not currently incur National Insurance costs.
- You can protect the unique name of your business/company with a limited company incorporation as nobody else will be able to use that particular name once you have registered it.