Company incorporation is not only for people in ties.
September 27, 2016
Usually when we talk about company incorporation, an image of the person in a suit with a tie arises in our mind. We often associate business, success and profit with large companies and formalities. Well, it was earlier, but now the situation has changed a little.
Nowadays, company creation is connected not only with the entities and large business. Common people who do favorite things can organize the company too. For example: a professional photographer or an artist or a writer. Any freelancer can form a company. Here are the reasons to do it:
Registering a limited company means that you will be a director and a shareholder. You will have numerous advantages. If you will receive profit, you get it back as dividends. You will pay less tax if you work under limited company than if you work as freelancer.
The main goal of any work is to get and save as much profit as it is possible. Paying large amounts of taxes, you lose an opportunity to earn more. If you set up a company, your taxes will decrease, and profit will increase. You can invest your income in business development and receive more profit.
Total control of your company
Working for an umbrella company (that is an employer for freelancers), you do some permanent tasks and do not have access to company’s finance and management. You can’t control this company. But if you form your own offshore company, you get total control on all deals, contracts and employees. You manage your company and decide what to do and what not to do.
All people know the lasting truth about company ownership: total financial and administrative control guarantees that your money is in safety, because no one manages your company, except of you. Of course, own company adds a wide flow of documentation, but it is easy to correct it by means of the assistant or the accountant.
It is prestigious to have an own company
Just imagine that someone is searching online such type of services as you offer. Who will look more solid, the freelancer or registered company? Of course, if potential client will choose between physical person and legal entity, a final choice will be made in favor of the last. It doesn’t mean that without company you can’t provide good services, but it is important for clients. Limited Liability Company will help to attract more and more clients because it has prestige and credibility. Represent yourself to the place of the client and you will understand the behavior and motives of client.
Your name is protected
If you register your company you don’t have to begin trading at the same moment. You can wait until you are ready and not worry about your name because it will be protected by the registered company. Nobody will take your trade name; it belongs only to you on legal basis.
Your personal assets are in safety
The last advantage of company incorporation is that you don’t risk your personal assets if your business fails or will be unprofitable.
If you do your business as a private person or a sole entrepreneur, your assets are always at risk. Limited company will protect your personal assets from debts and other financial problems.
We have listed the main advantages of limited company formation and we hope this information will be useful to you. If you want to learn more about company incorporation, please, contact us for free.
We wish you good luck in your business!