Trading through a Limited Company has become increasingly popular, due to flexibility, security and tax efficiency.
A Limited Company has a separate legal entity from the owners, even if you own 100% of the shares. The profits and assets of the company belong to it, not you as the shareholder, profits made by the company are withdrawn by dividends to the shareholders or as salary to employees.
Apart from advantages such as limited liability, the main advantage of operating through a limited company is that profits can be extracted by dividends, rather than as salary. Because dividends are not subject to National Insurance contributions, the savings can be very beneficial.
Whilst there are other trading options detailed on our website, these rarely prove to be either as tax efficient and/or compliant with tax laws. If you are contemplating starting your own business, these are aspects that you do need to consider.
With the experience and knowledge of Nixon Williams backing you up, we are confident that you will find that the process is more straightforward than it may first appear.
Nixon Williams can register a Limited Company for you, this is supplied free of charge to new clients signing up to our Premier Service.
Please refer to our separate Limited Company Guide for more details.