Why would I want to set up a Registered Limited Company for my business?
We covered several of the reasons you might consider in the types of business section of the starting a business course but this course covers those in more depth.
A Limited Company offers protection and a tax efficient way of starting a business – especially if you’ll pay higher rates of tax and you want to reinvest in the company rather than take the money out of it (yet).
A limited company is an organisation that is like a ‘person’ and is responsible in its own right for everything it does. Its a separate entity and so its finances are separate to your personal finances.
This course provides you with some information and guidance to start and develop a Limited Company as well as some tips to inform your thinking.
Setting up your Limited Company
The Limited Company
A limited company is an organisation that is responsible, in its own right, for everything it does and, its finances are separate to your personal finances.
How to set-up your Limited Company
You must register the company with Companies House and let HM Revenue and Customs (HMRC) know when the company starts business activities. All significant changes (like shareholdings or Directors) are released into the public area through Companies House.
Rules, permissions and Franchises
You may have other responsibilities depending on what your business does. Are you going to set up Franchise?
Accounting and management
You must start ‘traditional’ accounting for a Limited Company and prepare annual reports. Annual reports are released into the public area through Companies House.
Knowing and recording the allowable expenses for tax purposes can save you a lot of money. This lesson covers the most common allowable and non-allowable expenses.
Annual Investment and Write Down Allowances
Woah – this sound complicated. Well its maybe but ‘capital allowances’ are an important aspect of your business finances. Capital expenditure is the money you spend on items you would expect to last several years and they are referred to as assets – because they have a resale value.
Entrepreneurs Tax Relief
Entrepreneurs’ Relief means you’ll pay tax at 10% on all gains on qualifying assets.
Health & Safety
In managing your company you need to be aware of and compliant with the relevant aspects of Health and Safety.
General Tips and Help
This section contains practical help on things like ‘How do manage my time?’, and ‘where you can get software to help your business?’
Tips for your business
This lesson covers some tips from experienced businessmen and the banks to help you in your business.
If things go wrong
The Insolvency Act 1986 sets out the conditions of wrongful trading – where a company continues to trade when it cannot repay its debts when due.
Limited Company Quiz
This is a short 20 questions quiz which seeks to test what you’ve learnt. The correct answers are provided at the end of the quiz and you can have multiple attempts if you want to.