There is indeed no denying the fact that you can enjoy many advantages if you own a limited company. Your business will have more chances of being recognized by large companies that prefer to do business with limited companies. That means you can earn more profits as well. You can also enjoy the right of owning a one-of-a-kind name for your limited company that no one else can take away or copy. You will also have a great opportunity to get a larger take home pay since you do not necessarily have to hire a lot of workers; instead, you can only hire one or two financial experts to look after the financial matters of your business or to guide you in managing the financial aspects of your business. What’s more, it is certainly easy to transfer ownership if you own a limited company.
It is true that there are a lot of pros from owning a limited company, but you also have to follow the strict rules that go along with owning such kind of company. First of all, you have to make sure that you can be allowed to own a limited company. The law actually is very strict when it comes to the qualifications. Therefore, unless you are a purely self-employed person, you cannot really enjoy the opportunity of setting up a limited company. Second, you need to have your limited company registered. Yes. It should be registered and recorded at the Companies House. The record can be accessed by the public. That means if you try to pretend that you own a limited company, you cannot really pretend for too long since your potential clients will know if your limited company is registered or not at all by simply checking the records at the Companies House. Third, your limited company should have a name of its own. It is impossible to own a registered limited company without a name since your name is recorded as well. You should however have to make sure that the name of your limited company must not be the same with any other names listed in the record. That is why it is imposed that your limited company name must be different from among the rest and should not be a duplicate of any other registered name that appears in the record. That is the rule that should be followed. Fourth, you need to perform your financial obligations. It is a must that you comply with all the rules pertaining to financial matters otherwise you will be required to pay a big amount of money as your penalty for not strictly complying with the rules expected to be observed and followed by your limited company. You should therefore pay your tax. You can search Freelance limited company tax to learn more about how to pay your taxes as a limited company and everything about tax. Other financial obligations that you should adhere to include filing VAT returns accurately, filing company accounts and paying for national insurance to name a few. Moreover, you should not also forget about your PAYE obligations as well.