There are many advantages to setting up a limited
company.
Status
The status of a business is commonly perceived to be higher if incorporated
Tax & National Insurance
Remuneration can be calculated to dramatically reduce your tax and national
insurance liabilities. Eliminate the need to pay yoursely dividends rather
than a salary.
Increased Income
Some agencies will pay a higher hourly rate to Limited Companies than
PAYE employees as they have less paperwork to deal with and have no Employers
National Insurance to pay.
Flexibility
Flexibility and control over how much you are paid, when you are paid
and also how you are paid (e.g. by using benefits in kind).
Expenses
Any expenses incurred which are wholly and exclusively for the business
can be offset against the companies liability.
Limited Liability
Your personal assets are normally treated as seperate from those of the
business and therefore a Company's creditors cannot hold you personally
responsible for debts incurred by the business.
Protection of the business Name
Registration protects your company name by law and prevents anyone else
trading with it. This is not the case with a sole trader or partnership.
Continuity of Business
In a partnership, the death of one or more partner may lead to his/her
share being withdrawn by the partner's relatives, hence potentially ruining
the business. In a limited company set-up the death or resignation of
any director does not affect the structure of the company which can continue
to trade as before.