Should you set up as a private limited company?

?
  • Created by: SBDL
  • Created on: 05-01-13 15:02

Should you set up as a private limited company?

Advantages

  • Assets are still protected; deal with the risk of unlimited liability in being a sole trader however as an LTD, personal assets are protected.
  • Potentially more capital raised; Shares can be sold meaning more money can be raised and invested to cover any shortfalls.

Disadvantages

  • Publish details to Company House; This is a public service meaning that competitors can access details. This means anyone can find out whether you are in debt or profitable and act upon this, encouraging externalities to occur.
  • Report financial data; If you have no experience in reporting financial data to Company House, you may need to hire an accountant however this would be at an expense.
  • Legal Formalities; You would need to fill out the memorandum and articles of association

Evaluation

If you have already seeked a source of advice such as Chambers of Commerce and GOV UK, they would have hopefully provided you with the help in organizing costs and legislation regarding Company House.

Comments

No comments have yet been made

Similar resources:

See all resources »