White Collar Consultants Limited

So much more than tax

01952 780 220

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To go Limited, or not to go Limited? That is the question…

20/10/2015

Table showing advantages and disadvantages of limited companies.

At some point in the lifetime of your business, you will almost certainly ask yourself the question “Should I go limited or not?” It is highly important that you consider in-depth the benefits and drawbacks of this.

The main draw of going limited is that your company legally becomes a separate entity to you, and that you will oversee its operation as a director and shareholder. This means that should the worst happen, your personal belongings are protected and you only stand to lose that which has been invested in the business.

To an extent, going limited may also give you a greater level of flexibility in regards to the growth of your company by adding prestige, and there is also a possibility that you could improve the tax-efficiency of the company as well.

On the other hand, going limited brings a greater amount of paperwork to the business, as well as requiring accounts to be filed with Companies House and HMRC each year.

Before you decide to go limited, you should ask yourself: “Where would I like my business to be in 5 years?” In recent months, we have advised three different clients to de-register as limited companies, as they had registered without fully considering the impact it would have on their business, and whether it was truly the most appropriate course of action.

If you as a business owner have been questioning going limited, why not Contact Us for a free consultation?

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