You could already be self explanatory, conducting a small business as a sole trader, or assessing choices for a new business idea you have. Whatever stage you're in or
start a new ltd company read here, it might be worth contemplating forming a limited company, that has many benefits attached to it -- limited liability for company debts being the primary one.
Limited Duty
When operating a limited by guarantee company, but the responsibility of the owners (aka'guarantors' or'members') is limited to the amount they'guarantee' to pay towards the company's debts, even if required. That is because this type of limited liability company doesn't have shareholdings.
Tax
Tax efficiency is not far behind limited liability in terms of advantages. The likelihood is that you'll pay less personal tax as a director-shareholder of a limited company than you would like a sole trader or a spouse within a traditional partnership.
In addition, in reference withdrawing money from a limited company, director-shareholders can do this in three ways: as a salary through PAYE; by accepting dividends; and as a director's loan. These options offer lots of opportunities for implementing effective tax-planning strategies.
Independent legal entity
When you register a limited company, your company becomes a separate legal entity that is entirely distinct from you. This means your company will have its own legal personality, thus all company income will belong to the company, all company debts past the limited liability of members is going to be the responsibility of the company, it's going to have its own credit rating, it will have the ability to enter into contracts, and it can own land and other assets.
Standing, trust and credibility
The reputation, credibility, and confidence that arise in trading as a registered company inspires confidence in clients, suppliers and potential investors. Indeed, many larger companies just refuse to deal at any company that is not incorporated at Companies House.
Who are Companies House and what is their function?
Companies House is the UK's registrar of organizations and also the official governing body responsible for integrating businesses, collecting and saving company data, and making this corporate data available to the public. As an executive government agency, Companies House also enforces corporate compliance under the Companies Act 2006.