Becoming a director of a limited company is something which shouldn't be entered into lightly, beacuse it comes with a number of legal obligations.
Here's a quick overview of the key roles:
- The officers of the company are the directors (and secretary) you appoint
- The shareholders are those (including directors) who may put money into the business
- The administration of the company is governed by the memorandum & articles of association
Whilst a number of quick company set-up services may be available, care and attention to detail using Blair Cadell's tailored company formation package will be beneficial as any errors will be harder to correct once your limited company has been created as a legal entity.
There are a number of pros and cons associated with limited companies which is why it's so important to get advice based on your individual circumstances.
Main advantages of limited companies
- Liability to third parties - your liability is limited to the company's assets (subject to regulation)
- Tax - your personal tax affairs will be separate to those of the company
Main disadvantages of limited companies
- Flexibility - inflexible statutory regime for incorporation (and exit)
- Documentation - company formation package, books and ongoing record keeping
- Accountancy - annual audit; Companies House and corporation tax returns
- Banking - a full company business account is required
- Landlord - may require directors' personal guarantees
For a clear look at whether a limited company formation is right for you, arrange your appointment with Blair Cadell today.