You have finally found the inner confidence to start chasing your dreams of becoming an entrepreneur. You are fully aware of the risks you will need to take in order to get there, but are ready to take on the challenge. Learning about different types of businesses is at the top of your to do list, because you want to expand your knowledge before you start the process. Outsourcing solutions for your business are also a hot topic that you want to gain an insight into. Becoming a limited company is something you believe to be hugely beneficial to do, as it puts less pressure on you as an individual. Here are a handful of advantages that you might want to learn more about.
When you operate as a sole trader you will be responsible for paying all of your own expenses as your business and yourself will be viewed as a single entity. Setting up a limited company gives you that separation, so you can claim expensive for any costs you incur as a direct result of your business. This expenses guide will tell you everything you need to know about limited company expenses such as travel, mileage, accommodation and food. There will inevitably be many questions, so ask the experts and expand your knowledge now.
As a limited company owner you will be likely to pay less personal tax than a sole trader would. You will only have to pay corporation tax, which is set for this financial year at 19%. Next year this may even get less, according to the government. You should make sure your company is registered officially as a limited company, so that you can enjoy these kinds of benefits.
You can extract money from your company’s earnings before it gets taxed and contribute it towards your pension. No matter how old you are pensions are incredibly important to set up, because you never know when you might need to retire. Being able to withdraw a certain amount of money from your limited company income will put you in a much better position, than if you were to take it from your personal taxable income. You can find a lot of information about opening up a pension online, so make sure you explore your options and find the right scheme for you.
When you can no longer work, you will be able to continue running business as usual if you are operating as a limited company. If you were a sole trader, you wouldn’t have the power to hand over the responsibilities to other directors in your team, because you are on your own. In the event of you not being able to work anymore, you will have a continued legacy from your limited company, because other stakeholders can take control and carry on.
Find it within yourself to follow your dreams and make your business dreams into a reality. Make sure you understand the benefits of running a limited company and seek out advice from experts in the field if you want to enhance your knowledge even further.