One trading option for a business is to operate as a limited company. This will provide access to a number of tax planning strategies and limited liability status.
We can help you set up your limited company quickly and cost effectively and from there we can help you manage your obligations. However before you decide to trade as a limited company you should ask yourself if it is definitely the right option for your business.
Although there is perceived prestige in operating as a limited company you will lose some of your privacy – directors’ and shareholders’ personal details and abbreviated accounts have to be filed and are open to public scrutiny.
A limited company is a distinct legal entity that is able to enter into contracts in its own name. The fact that the company is a separate legal entity from its owners is very important as it means that all the company’s liabilities are the responsibility of the company – not that of the directors and shareholders!
The only exception is if you, as director of the company, offer a bank or other creditor a personal guarantee to repay the company’s debt. In that instance you then become personally liable to repay the debt if the company is not able to.
So what are the pros and cons of incorporating your business?
Needless to say, choosing the right business entity is not always an easy decision.
We are happy to discuss your individual requirements and undertake a proper risk assessment thus enabling you to decide on the best way forward for your business. Whether you proceed as a limited company or as an unincorporated business, our assessment will indicate the most beneficial tax arrangements available to you and help you to make sensible choices about how you can minimise your commercial risks.
Accountants Plus © 2016 | Phone: 021 487 1701 Fax: 021 487 1704 | 4 The Cottages, Main Street, Ballincollig, Co. Cork