Strategy, Tax 16th August 2023

A guide to forming a Limited Company

Why form a Limited Company?

If you’re looking to formally establish and grow your business, setting up a limited company is a major step. Here at Eastfield Accountants, we want to ensure you have all the information you need to get started.

Opting for a limited company structure brings several advantages for small business owners, including:

  • Limited personal liability – Your personal assets are separated from the business
  • Tax benefits – Expenses can be offset against tax and profits taxed at lower rates
  • Credibility – A limited company is viewed as more established

Key steps for setting up your Limited Company

Choosing a name and address

Your company name needs to be unique and available. Check the Companies House online name checker for availability. You’ll also need to register an official address – consider a virtual office if you don’t have a suitable business premises.

Structuring your company

You’ll need to file incorporation documents with Companies House to form the company. If you have multiple owners, a Shareholder’s Agreement is recommended to outline ownership stakes, responsibilities, and succession planning.

Registering for taxes

Don’t forget to register for Corporation Tax and PAYE if paying director salaries. We can advise on the most tax-efficient way to pay yourself. Your first return may cover more than 12 months – we can assist with realigning your accounting year.

Insurance, Licenses, Banking

Depending on your industry, you may need specific licenses and insurance coverage. Once registered, open a business bank account and be diligent in recording income and expenses.

Spread the word

Let potential customers know you’re open for business! Promote the launch on social media, have friends and family help spread the word, and don’t be shy asking for sales.

We are here to help

While forming a limited company involves many steps, you don’t have to go it alone. Our team of experts can provide guidance and support through every stage of the process.

Contact Eastfield Accountants today to discuss how we can help launch your business.