Should I Choose A Limited Liability Company Structure For My Business?

If you are starting your own business, you may be wondering which is the best company structure for your business. One of the structures you might want to consider is a Limited Liability Company structure. In this blog post our corporate lawyers in Peterborough explain what a limited liability company is, along with the benefits and disadvantages of this structure of company for your business.

What is a Limited Liability Company?

When you run your business with a Limited Liability Company structure you will be able to keep your personal finances and assets separate from the company. This will help to limit your personal liability if things were to go wrong within the business.

To set up your own limited liability company you will need to register with Companies House. This is relatively easy to do. You just need to supply the name of the company and the address. In addition, you must give the names of at least one director and the details of the company’s shares. You will also need to file a memorandum and articles of association. Details of anyone with significant control over your organisation will also need to be shared with Companies House.

The Benefits of a Limited Liability Company Structure for Your Peterborough Business

There are lots of benefits to running your business as a limited liability company. The main benefit is that your personal liability is limited. You will find that this business structure is also most attractive to lenders and investors. Running your business with this structure means that the company is only taxed on its profits. This means that directors are liable for the higher-rate tax band, which sole traders and partners can often be subject to.

The Disadvantages of a Limited Liability Company Structure for Your Peterborough Business

When running your business with a limited liability company structure it means that all information about your company is public. This includes all company accounts. There is an administrative burden to running your business as this structure too. More admin work is required that running a sole trader or small partnership business structure for example. If your business has a number of shareholders, there will also be voting rights. This can slow down or limit what you do with the business.

Not sure if you should choose a limited liability company structure for your organisation in Peterborough? Contact our corporate lawyers to find out more about this structure and the best structure for your business.