Limited Company: Security and Professionalism
A limited company is a separate legal entity, meaning the business itself is responsible for its finances, rather than the individual owner. This structure offers more protection and credibility but comes with additional responsibilities.
Pros of a Limited Company:
✅ Limited liability – Your personal assets are protected if the business runs into financial trouble.
✅ Better access to finance – Investors and banks are often more willing to provide funding to limited companies.
✅ More tax-efficient – You may pay less tax overall through a combination of salary and dividends.
✅ Professional reputation – A limited company structure can enhance your credibility with clients and suppliers.
Cons of a Limited Company:
❌ More administration – Annual accounts, tax filings, and Companies House obligations mean extra paperwork and potential accountant fees.
❌ Higher costs – Incorporation fees, accountancy fees and other additional running costs can add up.
❌ Less personal control – If you have other shareholders or directors, you may need to consult them when making key decisions.