Becoming A Limited Company...
...Set Up From £64 pm
When setting up a Limited Company there's a lot to keep in mind, whether it's your first time or if you're an old hand and developing your next venture.
If you've been a Sole Trader and you're looking to form a Ltd Company now then there are some key differences to be aware of in terms of regulations. It can feel like a headlong leap into the Twilight Zone, but don't worry -RIFT Accounting has every step of the way mapped and signposted.
We can get everything set up for you on your behalf, from choosing and registering your name to filing your accounts to helping you to use your accounts to grow your business. All it takes is one phonecall to get started.
Becoming a Limited Company could:
If you take advantage of our services, we'll help you do all of the following as part of our monthly fee:
The legal responsibilities of Limited Companies and Sole Traders are not the same. RIFT Accounting can help you make sure you stay on the right side of the law.
When you create a Limited Company, you're breathing life into something. You feed it, you keep it healthy and if the conditions are right you get to watch it mature and grow. Essentially, you treat it like a separate person and, weirdly enough, the law does too.
Once you're set up, all the protections of being a Limited Company start to kick in. For one thing, unless the company does something shady like trading while insolvent, Shareholders can't lose more than the value of their shares and Directors aren't personally responsible for company debt. However, if they have taken out personal guarantees or loans to fund the business, these are still payable.
This protection, of course, comes with an entire marionette's worth of strings attached. Just reading through the list of responsibilities that come with forming a Limited Company might make actually building that robot-monster you've been dreaming of seem like a cakewalk by comparison. Don't panic, though - here's where RIFT Accounting really gets going. Teaming up with us means we can:
As any good mad scientist knows, whether you're building a monster or a robot (or a robot-monster, if you're really ambitious), creation brings with it a measure of responsibility. If your freshly activated masterpiece snaps its chains and throttles a pitchfork-wielding villager you should expect some consequences - although you might be a little more protected than you'd think.
Contact us and let's build ourselves a robot-monster!
You may have heard that it's generally considered to be a little easier and simpler to set yourself up as a Sole Trader. This is true and it will be the best route if your business is very simple and your turnover intended to stay low. If that is the right set up for you then we can get your sole trader business off the ground and running just as easily.
However, there is more to consider. If the whole thing comes crashing down around a Sole Trader's ears, there's no limit to your liability. Larger companies may not want to work with a Sole Trader, and when you start to earn a decent income you could actually end up paying more tax and National Insurance than if you were a Limited Company - which is pretty close to a perfect definition of insanity.
Bottom line: if you're self-employed and earn at least £30K, becoming a Limited Company is likely to save you money. Of course it depends on your own unique circumstances but on average, you're probably looking at around £1800 saved in tax every year.