Any new business owner has the opportunity to set up a limited company and this is more often than not the most tax efficient way to work. A limited company can provide protection for its owner by dividing up any debts incurred by the business based on each owner’s or associates’ share. If the limited company incurs significant loss, the owners’ liability is limited to their personal investment capital.
A limited company is well suited to any individual setting up a business, whether you are starting your business alone, from home, or with shareholders. Starting a limited company can be extremely simple and does not involve heavy investment.
The aim of a limited company is to provide the business owner with high level legal protection against heavy debts. A limited company can also raise its own funds by offering the sale of shares. Those who buy shares will in turn receive a portion of any profits the company makes. The larger the shares bought, the greater their financial return or loss.
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