5 important things you need to know when you decide to form a Limited Company
There are lots of reasons why people decide to trade through a Limited Company and despite what people may think, it’s not always about tax.
Some people trade through a Limited Company for liability reasons, to help keep their business and personal finances completely separate, some because their ideal client prefers (or even insists on) Limited Company suppliers and yes, okay, some people do it to be more tax efficient.
Lots of first-time directors set up their Limited Company for one of the reasons above. It only costs £12 to do this via Companies House and is a fairly simple process.
But, then what?
There’s quite a bit of admin and compliance that goes along with being a director of a Limited Company. Here’s what you need to know about what you need to do next.
- You have to have a business bank account.
It’s a legal requirement to have a bank account in your Limited company name, so this isn’t a choice. You have to keep your business affairs separate.