The actual formation of a limited company can be completed in five minutes. Forms can be filled in online, and you can research available company names on the Internet too. However, this is only a very small part of the company formation equation, and there are numerous factors to consider from whether a limited company is the right option for you, to the compiling of your first set of annual accounts.
While it is possible to complete your own accounts, using chartered accountants offers a number of benefits over the DIY route, not least access to a professional with specialised expertise and experience that could potentially save you money and help make your new business reach profitability sooner.
First, you need to decide whether a limited company is your best option. There are alternatives, and there are benefits and pitfalls to each of the options. If you are a contractor, then it may be more profitable to remain as a sole trader or to join an umbrella company, but for greater freedom and greater potential for growth, the limited company may be your best bet.
A chartered accountant can look at your existing finances, as well as details of any contracts and projects that you have agreed or are in the pipeline. They can inform you whether a limited company is your best bet, and they can even advise on the best way to take money from the business, the ideal share structuring, and inform you of your liabilities and legal requirements.
Capital And Funding
Most new businesses require start-up capital, as well as a bank account, and, potentially, other viable forms of available credit. While this usually means that you will have to invest some of your own money, there are other potential sources of funding that could be useful to you.
An accountant will be able to advise on your best banking options, for your business and for you personally. They will also be able to assist in loan and credit applications, and they may be able to identify grants and other sources of income that you can use to help establish your business.
Meeting Your Obligations
There are a number of legal requirements and obligations that you must meet, and this is true whether you establish a limited company, form a partnership, or remain as a sole trader.
Your accountant will be able to identify your requirements, regarding company accounts and tax liabilities. They can also help identify the best ways in which to meet these requirements, and they may be able to provide advice on how to manage your liabilities. Skilled accountants can identify the best ways in which to ethically minimise your tax liabilities, ensuring that you don’t pay a penny more than is necessary.
Using Chartered Accountants
While limited companies are often considered the most tax efficient setup, this may not always be the case, while any benefit to this may be outweighed by other factors. It is important to get accurate and reliable guidance before and while establishing a business because, while the actual paperwork required to set up a company requires only a few minutes of time, making the wrong decision could have a serious impact for years to come.
Chartered accountants can help from formation to annual accounts submission, and they can help you identify the best possible opportunities for growth, as well as ensuring that you meet your legal requirements.