Taylor Evans Accountancy is here for you offering a personal service tailored to your needs, including the change from Sole Trader to Limited Company.
First things first – what is a Limited Company? According to Gov.uk, “A limited company is a company ‘limited by shares’ or ‘limited by guarantee’.” You may think of the word ‘limited’ as a negative, but that doesn’t apply in this case. In terms of a Limited Company, it refers to ‘limited liability’, and means that the company is its own legal entity. As opposed to a Sole Trader, where you are personally liable.
So, why would you make the change from Sole Trader to Limited Company?
Here are 3 great reasons to make the switch:
Your personal assets are protected.
As we touched on just now, a Limited Company is its own legal entity, meaning that you have limited liability for its debts. This protects your personal assets if the business struggles or even goes under. In contrast, a Sole Trader is solely responsible for any issues the business may face, due to you and your business being treated as a single entity. You would have unlimited liability for any debts. (In the vein of protection, it’s also worth noting that your business name becomes protected by law as soon as it’s registered with Companies House.)
More credibility for your business.
The success of a business relies so heavily on reputation, particularly in those first few years. Adding a ‘Ltd’ to the end of your business name is a sure-fire way to boost your brand’s credibility. In fact, some larger companies prefer to only deal with Limited Companies, and a few will even flat-out refuse to work with Sole Traders. So, not only will it give you a more professional feel, but it could also open up your client base!
Higher take-home pay.
That’s right – depending on the level of your profits as a Sole Trader, switching to a Limited Company could result in a boost to your take-home pay. This will, of course, vary depending on your individual situation. So, if you’re considering switching to a Limited Company, contact us for personalised, up-to-date advice.
We can help
Setting up a Limited Company is also easier, quicker, and in some cases cheaper than you might think. Do be aware, though, that with this power comes responsibility. As a director, you’ll be responsible for company admin, paying taxes (business and personal) and submitting returns to HMRC and Companies House.
And that’s where we come in. We take the hassle out of your accounts so you can focus on running your business to its full potential. With over a decade of industry-leading experience, we help you to overcome any difficulties with an exceptional level of service (just check out our reviews).
Whether you’re thinking of taking the plunge with a Limited Company, or just after a bit of friendly advice, get in touch today to chat about your needs.