7 Good Reasons to Register as a Company Today
From protecting your personal assets to managing what you pay to the taxman, there are plenty of good reasons to register as a limited company. And in this article, we introduce you to our top 7.
1. Protect Your Personal Assets
When you register your new venture as a company, your personal finances will be independent of those of your business. So, if your business builds up debts it can’t pay back, your personal assets should be safe from the insolvency practitioner.
2. Pay Less to the Taxman
As a director of a limited company, you can take money from the company as dividends rather than a salary, which can be more tax efficient. Plus you can take advantage of a range of expense allowances, including for mileage if your company runs a commercial vehicle.
3. Gain Exclusive Use of Your Company Name
When you register as a company, you will need to give Companies House a unique company name. This will be yours for as long as your business remains in existence.
4. Attract Fresh Investment
Compared to a sole trader or a partnership, a limited company is better at attracting long-term investment. Shareholders accept that they may not see a return on their investment in the short-term. But, if a bank decides your business is performing badly it may suddenly demand repayment of the loan.
5. Build Your Reputation
Your decision to register as a limited company demonstrates that your business is going to stick around. For this reason, customers and suppliers should be more willing to trust you with their business.
6. Become a Serial Entrepreneur
Are you full of business ideas? Then why not register as a company and sell the business on when you get an attractive offer? It only costs £12 to register a company online with Companies House (and we’ll pay the fee for you if you choose one of our company formation packages).
7. Fill Your Pension Pot
As the company director, you can see to it that your business pays into your pension pot from your pre-tax profits.
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What is a company formation agent?
Formation agents perform company registrations in partnership with Companies House. We’re one of the largest, and also the cheapest. We don’t just get your company registered then leave you to it – we use our experience to help you start your business properly. There are plenty of reasons to use a formation agent rather than go directly to Companies House. If you ask us, though, the best thing is that we go through the whole process with you, and get your application submitted securely online. We provide expert advice on the legal hurdles while you incorporate, and recommend good quality solutions that you might need after you’ve formed.
What’s the difference between sole trader and limited company?
Think of it this way: when you form a limited company, you put a protective shield between you and your business. Being a sole trader is the opposite – you have no protection. As a sole trader, you are responsible for any debt you might come into while you’re in business. When you register and become the director of your own limited company, you have less personal responsibility. The benefits are that you can claim back expenses, and add to your salary with dividend payments at the end of the year. For more information, see our Help Centre article about limited companies and sole traders.
How do I register a company?
Easy, we’ll do it for you. Check out our formation bundles to learn more about our different products. They start at £9.99, and go all the way up to our Super bundle. Limited company formation is a straightforward business if you’re as well-versed with the process as we are. If you’re not sure where to start, check out our company formation guides for an introduction and some insider tips.
Why The Formations Company?
We’re dedicated to British business, and love nothing more than seeing new companies flourish. 750,000 UK companies have trusted us to help them register, and we have thousands of happy customers who’ve seen how simple the formations process can be. We’re cheaper than going to Companies House directly, and cost less than most accountants. Our online application is incredibly simple, and if you’ve got all your documents handy it shouldn’t take more than 10 minutes to complete. So what are you waiting for? Start your business today.