If you are thinking about setting up your company as a ltd one you should make sure that you have considered the option of a sole trader, because this is less hassle to set up. If you are in business on your own and have no employees this might be your best option, but if this is not the case you should look into setting up a limited company.

A lot of businesses set up as a limited company, in fact most do. The term comes from the fact that the company’s finances are separate from that of the shareholders or owners, and this is the big difference between choosing whether to be sole trader or a limited company. If you can image some longevity in your business and envision and you will have employees then you might want to think about limited.

Company shareholders and owners are not responsible for debts in the company and their assets are protected although it may be required that the owners raise funds against loans in their own name should the company need it. They are required to credit back to the business.

You must register with the companies’ house which is the UK body for limited companies, and file your returns with them. This requires a small annual fee. Apart from that there are no costs other than if you require the help of a company formations specialist to help you with setting up the company. Every tax year you should inform the HMRC of your income and profit and expenses. All employees must pay tax and N.I.

Companies house deals with all company registration in Great Britain. Before a company can become Limited, it must be registered with the companies house. This can be a long winded process, which is why most business owners pay for company formation specialists to register their company with Companies house.

Once the documents have been signed and returned to company’s house, which include the memorandum of association, articles of association, and the IN01 form, you will get a confirmation which confirms your business registration and documents you as a UK business, which in turn will put you on a legal stand for the future of your business, and protect you from debts. If you are looking to be in the business for a long time you should definitely consider becoming a limited company.

If you find yourself asking How much to set up a limited company?, then you should visit my website all about setting up a limited company.