Top 5 tips when setting up a limited company
It’s a great feeling when you’ve decided to set up your own limited company, but it’s important not to forget to take care of a few essential things.
Not only does it make life a lot easier and help you stay compliant with the law, but you can also save yourself money in the long run.
New limited company owners should have the following five essentials:
1. Business bank account
A business bank account is a legal requirement, and not only does it mean your personal and business finances are kept separate, but it’s also much easier to keep on top of your cash flow.
2. Business insurance
Depending on the services you provide, you will need various insurance policies in place to protect both you and your business from the unexpected.
For example, it could be public liability insurance, professional indemnity or employer’s liability.
3. Register for taxes
It is essential that you register for Corporation Tax immediately, and PAYE if you want to pay yourself a salary.
VAT registration is another tax consideration, although it may not apply depending on your turnover.
4. Bookkeeping software
Keep track of all your income and expenses with some suitable bookkeeping software which can also help you stay MTD compliant and have everything ready for when you need to do your tax returns.
There are several options, such as Xero and QuickBooks, to choose from.
5. Appoint an accountant
An accountant who understands contractors and small businesses can provide much more than help with staying compliant.
Get someone with experience in tax planning and advice to keep you as efficient as possible and even help save you money.
Our view
It’s easy to get caught up with the actual work of setting up your new limited company, but don’t overlook these steps because they form the foundations of a well-organised business.
Deal with them early on so you can concentrate on bidding for new contracts and growing your business without added worries.
