Company Formation - How to form a Limited company
Contracting through your own Limited company is the most tax efficient way of working meaning that you can take home more of your hard earned money, any accountant or tax expert will tell you this. But isn’t it a lot of hassle managing your own Limited company?
Well we won’t lie, using an umbrella company is the simplest option.
However, you might be surprised at just how little extra work there actually is managing your own Limited company. Other than sending a few cheques here and there to HM Revenue and Customs (your dedicated LDF Accountancy Services Ltd accountant* will help you understand how much to pay), sending out invoices, and filling in a spreadsheet there really isn’t that much more. Contractor clients say to us it typically takes them about 15 minutes a month.
The financial rewards for owning and working through your own limited company compared with using an umbrella company could be substantial, as much as £15,000 per year more on a daily rate of £350.
How Do I Form A Limited Company
Once you’ve made the decision to contract under your own Limited company, the next step is to form your company. The whole process only takes 5 minutes through an email and we will take care of the rest, following which your company will be formed within approximately 2 or 3 working days. All you need is a company name. Once you have formed a Limited company, you will receive all the necessary Limited company documentation from ourselves, in order to set up your ltd company bank account.
Additionally we will take care of the company PAYE and VAT registration.
|Director Details||This is you. The Director controls invoicing, the company bank account and decides on how much to pay themselves, which is made up of a combination of salary and dividends.|
|Secretary Details||Following a change in legislations, as of 6 April 2008 there is no requirement for a company secretary You will need to allocate shares in the company.|
|Subscriber/Shareholder||Dividends are distributed to the shareholder(s) of the company, which is how you will take most of your income.|
We can also advise you on registered offices – you may be registered at home or a formal business address however LDF offer a service through which we deal with all your business mail leaving you free to run your business!
How Much Does It Cost
Forming your company costs £250, which is one of the lowest fully inclusive prices available. You can of course find cheaper prices on the Internet but they rarely include everything you need, such as VAT and PAYE registration, each of which can cost as much as £100 plus VAT from other accountants. Plus, cheap online formations often don’t provide any telephone support, so if you do get stuck who is going to help you?
We have even seen offers of free company formations, which on first sight seem like great offers. It’s only when you read the small print that you actually find out that if you accept the free formation you must remain a client for a minimum of a year or even longer, meaning the so called free formation ends up costing you thousands.
Forming through LDF will give you peace of mind as you can us directly and will be more than happy to assist you. You can of course form your company anywhere; you don’t need to form through ourselves.
Forming your company online through us covers the complete company formation service with all legal requirements so that you can start trading as a Limited company. This includes:
- Company formation
- Registering the Company for VAT and PAYE
- Advice on the optimum share structure of your Company