A limited company can be owned by multiple people, and the owners of the company (shareholders) are personally protected - the total risk to the owners is limited to the value of the shares they hold. But there are obligations you must meet.
If you're a homeowner or have assets like a car, there's more protection in working through a limited company, but there are obligations on those who run the company (the Directors). As a director of a limited company, you must:
- follow the company’s rules, shown in its articles of association
- keep company records and report changes, ensuring a Confirmation Statement is filed annually
- file your accounts and the Company Tax Return
- tell other shareholders if you might personally benefit from a transaction the company makes
- ensure the company pays its Corporation Tax
- register for Self Assessment and send a personal Self Assessment tax return every year
Here at Whitehill we're able to provide all the business support you need to run your company effectively and ensure you meet your legal obligations.
The advantages to starting up or converting to a limited company include reduced personal risk and the ability to take money form the company in a number of ways, which could have some tax benefits. Read our guide on sole trader vs limited company advantages and disadvantages here: »
Bookkeeping and accounting for limited companies
Other services to add to your basic bookkeeping and accounting
We recommend you add on the following services to your basic bookkeeping and accounting package;
- Mailbox and registered address - ensuring your private address remains private, and the post sent to your company from HMRC, Companies House and others is dealt with promptly
- Company secretariat - making sure your company's Confirmation Statement is checked and filed on time, and the documents which must be publicly available are securely stored and available for inspection.
Other services, such as web services, are relevant to any type of business; please click on the links above to find out more.