Setting Up A Limited Company: A Jargon-Free Guide

Google reviews
April 29, 2016
n

Incorporating your company is a shrewd business move for a contractor or freelancer. By setting up a limited company, you can protect more of your hard-earned profits, and minimise risk when dealing with high-value clients and contracts.

However, the ins and outs of going limited can seem a little overwhelming at first. To help you get your head around the steps to incorporating your business, we’ve put together a handy guide on how to set up a limited company.

What is incorporation?

Registering your business with Companies House is known as incorporation. It establishes your company as a separate legal entity, with a certificate of incorporation to prove it. By incorporating your business, you become the Director of a company, with more flexibility on how you withdraw your profits.

Operating under a private limited company not only limits your own liabilities when operating otherwise; this legal status can make your contracting or freelancing services more attractive to potential clients, by minimising the risk of dealing with a one-man band.

Setting up your company

To incorporate your business, you need to choose a unique company name that isn’t already registered with Companies House. You will also need to register a Director and shareholder (that’s you!), and an address for your company.

If you don’t want to include your home address, ask your accountant if you can use theirs instead. They can also help you draw up a memorandum of association and articles of association, outlining how the company will be run.

It’s important to note that setting up a limited company goes beyond registering with Companies House. You will also need to set up a business bank account, display your company registration number on your website and invoices, and secure a PAYE number from HMRC to get you started on the payroll.

Company formation support

We can help with all of the above so that all you need to do is choose a name that best sums up who you are and what you do. Do you want to become Joe Bloggs Limited, or create a company name that gives your business room to blossom in the future?

Bright Ideas Accountancy offer a company formation service free of charge for our Gold package customers, meaning you can benefit from our ongoing accountancy services, such as filing your self-assessment and calculating your tax liabilities. However, if you simply need a hand with setting up a private limited company, we offer this service for just £85+VAT, and can have your business up and running in as little as 3 hours.

Establishing a limited company may seem daunting at first, but it’s an exciting step in the life of any contractor or freelancer. Follow these tips to take the stress out of incorporating your business, and get in touch with Bright Ideas Accountancy if you want full assurance that your company has been set up by a team of experienced contractor accountants.

LTD

Resources

Recent Articles

HMRC app helps with student finance applications

HMRC app helps with student finance applications

An app from HMRC which provides information such as your National Insurance number and tax information has been flagged by the taxman to help students completing their A’ Levels this year and planning to head to university in September. Anyone who is applying for...

Want to avoid fines from HMRC? Here’s how

Want to avoid fines from HMRC? Here’s how

No-one likes to pay more to the taxman than they have to, but if you fall foul of HMRC’s rules, you could find yourself paying a penalty, and interest if things are not sorted out quickly. There are various fines you could face from HMRC if you get things wrong, and...

Why Stamp Duty Land Tax might need to be reformed

Why Stamp Duty Land Tax might need to be reformed

Stamp Duty Land Tax (SDLT) is the bane of property buyers in the UK. It is paid on every property purchase worth more than £250,000, and more people are being forced to pay it each year as the thresholds stay the same while property prices rise. The number of...

Ready to join us?

Whether you’re a contractor, freelancer, or small business, Bright Ideas can help remove the burden of time-consuming and complex finances. We’ll draw on our years of knowledge and experience earned helping sole traders just like you.

When you choose us, you’ll be assigned a dedicated Account Manager who’ll provide one-on-one support that’s customised to your business. Communication is key, so we’ll always answer your questions or requests as soon as we can. In fact, we offer a same-day response guarantee for emails and calls received before 3pm.

Contact us to get started

Give us a call us or send an email today!

Looking to switch accountants?
We make the transition simple.

Does your current accountant give 1-to-1 support? Are they fast and thorough?
Slap-dash services hold businesses back, so try our experts instead.

Move to an accountancy service that goes the extra mile…

Start the conversation

Let’s make your finances Brighter

Call us Monday to Friday 9am - 5pm

0161 669 4221

Request a call back