Sole trader is a person who is running their own business as an individual. You can retain all your profits after paying tax on business 'profits'.
You are legally responsible for and are not limited to:
A limited company is an organisation that you can set up to run your business. It is a separate entity and is responsible for making its own tax return (liable to Corporation tax on business profit. Limited company is owned by shareholder(s) based on the type of shares owned. It is mandatory for a limited company to have minimum one director. There are many legal responsibilities of directors.
There are many types of limited companies but the most popular is company limited by shares. This basically means that the company's financial responsibilities/liabilities are limited to the value of company's shares/capital (which has been paid for).
Please contact a member of staff to inquire on how to set up a limited company.
Please see HM Revenue & Customs comprehensive guide on setting up a limited company.
After registering a company, it is the legal responsibility to inform H M Revenue & Customs when company starts business activities.
Every financial year, the company must:
The company must register for VAT if the company's turnover/sales/takings are in excess of £79,000 in a continuous 12 month period.
As a director of a limited company, you must:
Under partnership structure, you and your respective partners are personally liable/responsible for the business.
The partnership is similar to sole trader structure, at the end of the year the business profits or losses are shared between partners as per the agreement.
All partners are legally responsible for and is not limited to:
A Limited Liability Partnership is set up similar to a company. You need to register a LLP with Companies house.
LLP makes tax returns similar to partnership.
Contact us here to get in touch today to get to know how we can help you.