The main reason for a limited company is that the liability of the owners, that is the shareholders and directors, is limited by law.  In the event that the company goes into receivership or is wound up, only the assets of the company are taken into account.  The personal assets of the stakeholders are protected.  In the case of a sole trader or non-limited business, all your assets could be at risk.  You could lose your house, your car and everything you own.

But there are other advantages as well:

• The name of your company is registered and no two companies can have the same name. You have a unique place in the market;
• There is a certain status or credibility that comes with being a Limited company.
• Typically, accounting fees and taxes are less. It is wise to check this out first to see what the costs are in your particular situation. We have all the experience you need to advise you about likely costs and benefits;
• The tax benefits can be substantial, particularly for high earners. They have the option of keeping the income in the business or placing it in a pension scheme;
• Banks and other lenders look more favourably on a limited company;
• Ownership of the company can easily be changed through the sale of shares. You can also raise capital in the same way;
• Once established, the name of the company is reserved and no one else can use it, whether you use it immediately or wait for years to do so; and
• Once established your company has an indefinite life and can be activated when you choose. It can also be passed down to your heirs