If your business is continuing to grow and you are operating as a sole trader, you may want to consider changing your business and registering as a limited company. Changing from a sole trader to a limited company in the UK can be challenging, especially if you don’t have time to deal with all the paper work involved. But there are many advantages to changing the status of your business.
Establishing a Limited Company
Setting up a private limited company doesn’t have to be that difficult as long as you have help from an experienced professional. Barron & Co Company restoration in Birmingham are experts at helping clients to transform themselves from self-employed to a limited company. If you want to process to run as smoothly as possible, it is important to hire the right assistance.
Chartered accountants have years of experience with business transformations, they help business owners change their status to avail of numerous benefits. On most occasions, a business owners are doing well, and they are experiencing incredible growth and progression within their company, but they are still trading as self-employed. They often don’t have the time to change their status, so they avail of professional services to make the alteration.
You must provide your accountant with some personal and business information to help them change your company to a limited entity. At a minimum, a chartered accountant representing your organisation will require information such as:
- Company Name
- Registered Address & Name
- Personal Details (Occupation, Nationality, DOB, etc.)
Your accountant may also ask for additional documents depending on the type of work you are doing and your current situation.
Selecting an Accountant
Choosing the right accountant can be a challenging decision, you must pick a professional who is right for you. You should ask them various questions about the process and only deal with a firm or individual who has plenty of experience with company formation. A competent account will be able to save you both time and money during the transformation process, they’ll also be able to advise you on the range of taxation benefits you are entitled to as a limited company in the UK.
Some Advantages of a Limited Company
Higher Pay – When you register as a limited company, you are entitled to take home approximately 75 to 85% of your contract. If you use an umbrella company, you can’t take as much pay as a limited organisation.
Complete Control – By transferring over to a limited company, you keep complete control of your business and financial affairs.
Reduced Risk – As a non-limited business, your personal assets can be at risk if your business fails, this isn’t the case with a limited company.
If your business continues to expand and you’d like to learn about the benefits of changing your status to a private limited company, you should contact a chartered accountant and discuss your process. Changing to limited company brings numerous advantages and the change over procedure is relatively straight forward when you employ a knowledgeable accountant to help.