There are a number of different types of company but the most common, and usually the best suited to an owner-manager business, is a private company limited by shares. Limited liability is the best way to protect your personal assets from any claims made against the business by creditors, because the maximum amount any shareholder can be required to contribute in the event of any loss suffered by the company is limited to any unpaid share capital as regards the shares issued to the shareholder.
There are additional benefits to running your business as a company in terms of corporation tax (which is at a lower rate that the higher earnings threshold), the ability of shareholders to withdraw profits by way of dividends (which again have tax benefits) and, because of the necessity to publish accounts, quite often it will provide access to perhaps higher profile customers, who would not be prepared to deal with individuals, with the associated commercial benefits that such sales may bring.
For more information about forming a company call Francis Wilks and Jones on : 020 7841 0390 and ask for Senior Associate Sally Bradshaw
