Do you think the business is about making money or turning your passion into business to make things interesting?
Starting your own company is a great way to start your business. However, you have to ensure that you take care of it and focus on continuous growth and develop it with new ideas and innovation.
There are three main types of business structures like
Limited company or Limited Liability Partnership
Each type has its own advantages and disadvantages. Today We will discuss few reasons to start business as Limited company.
A limited company is privately owned businesses that have the freedom to sell products and services based on their choices. If you’re planning to start a business here are some reasons.
1. Credibility in the Market: One of the reasons why you should start a limited company is because they are more popular than other regular associated companies. If you’re planning to trade with various other companies from around the world, it is recommended that you go for establishing limited company that has more credibility in the market.
2. Independent Decision Making: Limited company has the right to make their decisions and therefore it offers more freedom to the owners to make decisions and decide what is best for their company. Entrepreneurs often require more freedom that can allow them to expand their business in various different ways.
3. Independent Business Account: While starting your limited company you have to separate your personal account from the business account and that means there is low personal financial risk. There are separate accounts created for your limited company business and therefore you are protected. If there are financial losses or if things go wrong. The overall structure of establishing a limited company protects the owners from suffering a personal financial loss.
4. Limited Liability of business owner: The liability of shareholder is limited to that business structure and won’t go beyond to your personal property or other business.
5. Tax savings: is another benefit that you can gain from starting a limited company. There are various tax planning tools that you can use to pay your taxes according to your business circumstances. The corporation tax for limited company has dropped down to 19% which would lead to tax savings.
To find out detail advantages and disadvantages of other business structures, please speak to one of our adviser.