Starting a Company: Why Choose Limited?

What is a limited company?

A limited company (LC) is a general form of incorporation that limits the amount of liability undertaken by the company’s shareholders. It refers to a legal structure that ensures that the liability of company members or subscribers is limited to their stake in the company by way of investments or commitments. In a legal sense, a limited company is a person.

Why is this the best choice? Forming a limited company has many advantages over starting as a sole trader.

• Protection through limited liability. Taking calculated risks is part and parcel of doing business, whether you’re a sole trader or a limited company, but only the latter insulates you from you a calculated risk gone wrong. If the company runs into trouble or even goes belly-up completely, you won’t be personally responsible for any of its financial losses.
• Tax and National Insurance efficiency. Any opportunity to lower tax payments is always a welcome one. As a director of a limited company, if you take a small salary and most of your income comes in the form of dividends, you’ll still be entitled to State Benefits without paying any employer or employee National Insurance Contributions (NICs). Dividends attract less tax than salary and aren’t subject to NICs, whereas a sole trader’s entire income is subject to NICs.
• Improved reputation/credibility.Confidence is critical in business and a limited company has a veneer of professionalism, which can inject confidence in your business. Some clients – large corporations and those in the financial sector especially – simply prefer to work exclusively with limited companies, but others flatly refuse to deal with unincorporated businesses.
• Easier access to finance.The separate legal entity of a limited company may make it slightly easier to secure finance than sole traders. Also, companies can raise capital by issuing new shares to shareholders and new investors.
• Easier to sell/transfer business ownership.If you want to call it a day, sell your shareholding, it’s much easier to transfer ownership of a limited company than an unincorporated structure. Clients, equipment, the whole caboodle can be bagged up and sold off.

These are just some of the advantages. There are more than this, but we thought that we would simply give you the most important ones.

How easy is it to start a limited company?

We can assure you it’s much easier than you think. If you ask most people how you’d go about forming a limited company, chances are they’d stare back at you blankly. A common misconception is that incorporating is a bureaucratic obstacle course that can take months and cost thousands of pounds. The truth, though, is that you can incorporate online in less than ten minutes, and all for about the cost of a takeaway pizza.

Why use Just Limited?

With Just Limited, the process could honestly not be any easier. We have designed the process to make it as quick, efficient, and as simple as possible to help you form your new, limited company. It’s a very quick turnaround from start to finish, with your company being formed in just a matter of days. We’ll submit everything for you. The hardest part of the process is deciding what name you’d like. Not only this, but we know that our customer service is head and shoulders above the rest. We have a dedicated team on hand to guide you through the process and to keep you updated with how your newly formed limited company is coming along. It couldn’t be simpler. So, the real question is, what are you waiting for? Just Limited have got you covered! So, get started today and form you limited company.