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    Home»Business»Business Services»Should You Form A Limited Company?
    Business Services

    Should You Form A Limited Company?

    AngelineBy Angeline2 Mins Read
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    When you work for yourself or are considering doing so, it is often hard to work out whether or not it is better to simply remain self employed or to make the move from sole trader to limited company. Both have their benefits, and both offer very different things for those involved.

    The great thing about limited company formation is that it takes a lot of the risks out of your business dealings. A limited company effectively means that your liability is limited to those of the company as opposed to having your own personal assets liable too. In other words, if something goes wrong, only the items and money belonging to the company are at risk, instead of all of your personal money and possessions too.

    Remaining as a sole trader can be beneficial for those who are positive that they will have no risk, but there are very few businesses who can be so sure, and it is impossible for anyone to predict the future no matter how great the present is.
    There are of course other benefits of limited company formation. Banks and customers often feel more comfortable dealing with limited companies, whilst tax incentives can be much better for those companies who are limited.

    For those who want to make the change between  being self-employed and running an actual business, there are other types of companies that you can form, but none have the same benefits that a limited company can offer. For safety and financial reward, they are far and away the best way to go.Company formation can actually be surprisingly easy and cheap if you use the right company to guide you through it. So if you want to be covered for every eventuality, then company formation might just be the best way to ensure that you are.

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