The Best Guide for the RM6 Area

Bridging the gap by Stonebridge Chartered Certified Accountants

Sarfraz Farooq, Director, of Stonebridge Chartered Certified Accountants, Ilford gives his views on whether, or not, you should trade as a limited company.

On the positive side becoming limited gives the impression of being a more established business. This could lead to improved ‘pulling power' with suppliers and enhanced status with customers who may be impressed seeing "Ltd" after your business name.

It also could allow easier disposal of the business and open the way for employees to acquire a financial interest in the business.

Any impending legal action against the business could be taken against the company, rather than an individual along with other benefits of limited liability.

On the downside there are restrictions on the way your money is taken out of the business. For example, you can only take dividends as a way of rewarding yourself for all that hard work if there are profits available in the first place!

Accounts would be open to the public as they need to be filed at Companies House. The compliance costs here can be greater.

Before deciding on whether to become limited, it is advisable to seek specialist professional advice. We can help at Stonebridge where we pride ourselves in ‘bridging the gap between your money and your pocket'.

At Stonebridge Chartered Certified Accountants our aim is to make our clients' businesses more profitable while minimising their tax liability.

For further information please contact Saf Farooq,
Stonebridge Chartered Certified Accountants,
337 High Road,
Ilford, Essex
IG1 1TE,
tel: 0208 553 9363
email: saf@stonebridge.uk.net

The content of this article is for guidance only and professional advice should be obtained before acting on any information contained here in. Please note that Stonebridge cannot accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this article.

What do you think?

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Joined: 17 Apr 2008
Posts: 9

At 08:40 on 22nd July 2008, Nessie M commented:

That's excellent advice. I think for now being a sole trader is best for me!

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