If you are forming a new company and this is your first time to create one, then the limited liability company is the ideal form for you. It is ideal because it protects the financial welfare of the owners of the company. It has a separate identity from its owners and the assets of the company are the only ones that could be seized and used to pay for the debts and financial obligations of the company. The limited company protects its shareholder’s assets as well. With limited liability, the assets to be seized are also limited during bankruptcy. Unlike in the Solo Proprietorship wherein the owners have a personal responsibility in taking care of the financial obligations and makes use of their personal assets in paying the company’s debts.
Apart from the financial protection that the limited company offers, it has other advantages. These advantages are in the form of tax benefits, opportunities wherein the owners of a limited company can save money and use the benefits that the government offers. The limited liability also requires less paper works and requirements for holding formal meetings and keeping records.
Steps in the formation of LLC
In forming the company, you should choose your company’s name first. You limited company formation service online can check in the Companies House and see if you have a similar company name. You can visit the website and if there is a similar name, you should choose another name for your company because there should be no two companies with similar name. Also bear in mind that your company’s name should end with “Ltd.”
In the UK, forming a company no longer require office bearers or a secretary, this is in accordance with the latest Companies Act.
There are people who choose to form their companies by themselves but you can also hire a business start-up firm to help you with the allocation of shares and guide you throughout the process of forming the company and the legalities. It can also teach you tax efficient measures to increase your profit.
The online counterpart of the business start-up firm are very quick, they are experienced and inexpensive. With only 30-50 Pounds, your application can be processed and they will send you all the necessary documents. All you have to do is print out the forms, fill it up and send it back to them. If you are looking for a more convenient way of forming a company, you can buy a limited company formed by a business start-up firm. The ownership can be transferred to your name after paying the fee and all the transactions are done online.