Company incorporation is something that many aspire to, but is it right for you? If you have chosen this route over being self-employed or forming a partnership, it is essential to ensure it is done in the right way.
A limited company has benefits which include being separate from the shareholders, running its own accounts and being able to keep its own profits. Company incorporation means you are creating a separate, legal entity.
You will need a unique company name, registered address and at least one director. Incorporating a company means registered it with Companies House who will inform HMRC about when tax returns are due.
There are other factors you need to consider when you set up a limited company. These include you now having to do a personal as well as corporate tax return each year and setting up a pension’s auto-enrolment scheme for each employee, yourself included.
Depending on what type of business you want to setup, different reliefs may apply. And are you looking to raise funds? The Enterprise Investment Scheme (and Seed EIS) could apply to your business, although there are many other ways to raise funds from investors.
Essendon Tax can advise you on the best legal structure. Company incorporation may be the best way, but you’ll need to know your tax position depending on the type of business.