Making the decision to establish your own new business can prove a difficult choice. While many people choose to become freelancers, there are certain benefits that are offered to owners of limited companies that are not afforded to the registered freelancer. Using The Formations Company, you too, can enjoy these same benefits by establishing what will hopefully become a profitable and successful business venture.
The greatest benefit of a limited company is that the assets of the shareholders and directors are treated separately to those of the new business. This means that, should the business find itself in financial difficulty, this will not directly affect the assets of the shareholders. For example, if your new business faces receivership, you do not stand to lose any of your own personal finance as a result of the action. The same is also true if the business faces a winding up petition.
Credibility and image are important in business. While freelancers and non-limited companies can work to create credence with their suppliers and their customers, a limited company offers a more prestigious and credible entity that customers will be more inclined to trust. Furthermore, because no two companies can have the same name it means that confusion will not lead to a loss of credibility. You will benefit from your own actions.
Even if you are not ready to establish your business now you can still complete the formation. Limited companies are permitted to remain dormant for any amount of time and so you can use the opportunity to protect your desired business name. When the time is right, for example market conditions or industry conditions change to your advantage, you can then make the first moves into establishing the business for real.
There are benefits to setting up a limited company that you simply don't enjoy if you choose to become a freelancer or a non-limited company. You, personally, will enjoy greater financial protection with a limited company and it may even work out cheaper, although you should always consult with an accountant or do the calculations yourself to determine whether this is true in your case.
Visit The Formations Company
website to check availability of your desired company name and to start the ball rolling in forming your own limited company.
Article By: William Pollard