Start-up Tips: Consider a LTD Company
When you first step out as your own boss your focus is on getting paid and paying the bills. But that quickly changes and your attention shifts and you consider how you can be more tax efficient and reduce your personal risk.
That’s where setting up a limited company can step in and provide many of the answers. With increased credibility, higher take home pay, less personal risk and better tax planning you can see why many freelancers and small businesses chose to set up as a limited company.
Limited Company: The How To
PLC or LTD?
- Most freelancers, small businesses and start-ups choose to incorporate as limited companies rather than as a PLC. PLCs require a higher start up capital (minimum £50k) and at least 2 shareholders, directors and a qualified company secretary.
Naming Your Company
- It’s probably more difficult than naming a new born – there can only be one company with any name and the choices are becoming… limited. Check here to see whether your name idea is available.
The Nitty Gritty
- To register your business with Companies House, you’ll have to provide an address for your registered offices, director’s details, share capital and who owns the shares. You’re going to need a business bank account too, one that incorporates live feeds to accounting systems like the app we will set you up with on day one. The app will give you live updates of your accounts and save you a huge amount of time
- You’re going to need to file what’s called the Memorandum of Association, Form 10 and Form 12 as well as the Articles of Association. Basically, all of these confusingly titled forms confirm what your company does, where it does it, who the directors are and what powers they’ll have.
While the process isn’t hugely complicated it can take valuable time out of your day and if you don’t get it right – it can slow down the process of trading as a limited company. But don’t worry an alternative exists – Sidekick, we can take the strain of the laborious process for you as part of many of our packages.