3rd August 2017 Posted by - Alexander Accountancy
When should I go limited?
This is a very common question, especially from sole traders and owners of small but growing unincorporated businesses. And as accountants we will explain the remuneration and tax planning aspects in favour of one or the other. We will explain the cost implications due to payroll requirements, filing requirements, statutory obligations and possibly workplace pensions. And we will recommend what we believe is the best financial answer. But
What about none financial considerations?
If you asked a solicitor the same question, there is a good chance his reply will be
“ALWAYS GO LIMITED”
Why is that? Because a limited company minimises your exposure to risk, it protects what you own personally and it protects your family. As a sole trader or if you run an unincorporated business, when things go wrong you are personally liable putting your home, savings and your none essential possessions at risk. Whereas when you trade through a limited company, providing you do not act in a reckless or negligent manner, your personal life and possessions are protected. From the solicitors perspective advantages for financial planning are a secondary benefit.
If you would like to ask about going limited Alexander Accountancy offers free business reviews where we are happy to deal with this subject.
Alexander’s Business Club will be holding meetings on 21st September 2017 and 16th November 2017 where you can have free access to put questions to Accountants and Solicitors.
Plus a special Business Owners Evening at Pride Park in Derby on 28th September 2017 where a team of Accountants, Financial Advisors and Solicitors will highlight the ways your business can pay for the rest of your life.
If this is something you would like to know more about please telephone 01283 743851 or email in**@al*******************.uk
