Advantages and Disadvantages of a Limited Company
A limited company is one of the most popular business structure in the U.K after ‘sole trader’.
Over three million limited companies have got their business registered with the Companies House in 2017/18.
A Limited company is a form of company where the business owners keep their assets and finances separately from the business. This means that the persons who have invested in the business are accountable to the business debts upto the amount they have invested. In this way, company gets a good investment where the shareholders are personally protected without risk to their personal wealth.
Therefore, a limited company is perceived as an entity in its own right based on legal action. As a distinct body, a limited company can also be the director of another company.
A limited company:
- Is a legally separate entity from the persons who run it.
- Has finances separated from your own.
- Can retain profits after Paying Tax.