The reason for incorporation – When and why?
Many sole traders & small businesses may consider themselves too small think there is any benefit to them in incorporating, however incorporating your business can not only save you money but protect your business.
Privacy – When a business is incorporated a Registered Office address must be registered with Companies House. Newly incorporated businesses usually register the office of their accountant or tax advisor as the company’s Registered Office, this is so that their personal address is not recorded on the public file at Companies House for all to view.
Drawings – If a limited company, paying a small salary up to the personal allowance and the balance as dividends is normally the most efficient method, however this is not always the case.
Liability/Personal asset protection – Without incorporation, your personal savings and assets could be at risk and used to settle against any debts of the business. Once you incorporate, the business it becomes a separate legal entity and your personal possessions are protected as it is the company who is responsible for settling debts and not you personally.
Tax Benefits – Incorporating can, in some cases, help you lessen the tax burden you may currently be suffering under. Companies are sometimes privy to certain tax benefits and deductions, which individuals ie sole traders, are not.
VAT – Flat Rate VAT Scheme – See how being VAT registered can actually make you money, contact Charlotte now to see how much extra you could be making.
We will review your current business set-up and discuss the pros and cons of incorporation with you.
We will provide you with all of the information you need in coming to an educated decision of whether to incorporate your business or not.
If this is something you have been thinking of doing then please call Charlotte today.