The rate of new limited company formations is at an all time high.
Whilst new businesses are great for the economy, I have to ask have all of these limited companies been set up for the right reasons.
I see many a business owner set up a limited company and then run into trouble when the first set of accounts are due.
In some cases they really are not aware of what they have got themselves into.
Six tips on when you shouldn’t set up a limited company
So my advice is don’t set up a limited company:
- Just because you want to be called a director
- Because you think that as a limited company you do not pay tax
- If you think you can do the accounts and tax returns yourself
- Because the ‘bloke down the pub’ said it was a good idea
- Because limited company looks better on your web site
- Unless you have at least £360 for the annual accounts and corporation tax return
A limited company is a great structure to operate a business under.
Make sure that you get relevant, realistic and tailored advice suitable to YOUR circumstances BEFORE you jump into a limited company formation.