The Basics Of Limited Companies
Limited companies represent arguably the most profitable type of self-employment. Although in some cases setting up as a sole trader is best for some individuals, having a limited company will often give you more tax efficiency while enabling you to maximise the amount of pay you take home. Furthermore, it also gives your business even more authority and credibility within its target market.
The majority of small companies in the UK will be set up as private limited companies (LTDs) however all businesses are different. Some business owners feel that their company would be stronger as a PLC (Public Limited Company). Whichever you choose, you can be confident that the primary benefit of setting up as a limited company is that it will give you even more financial protection as you will not be liable personally for any potential losses made by your company.
Limited company owners only have financial responsibility for the money that they have personally invested in the business and, therefore, this makes setting up as a limited company the ideal solution for entity who are keen to make their business larger or more professional.