Benefits of Limited Liability Company Formation
As the name suggests, a limited liability company (LLC) is a company that helps small businesses to limit the liability of their owners. As a legal business structure, an LLC has a distinct identity which is separate from that of the individual owners. Thus, in case of a future financial slump, the personal assets of individual owners are protected. This discharges the shareholders of the company from any responsibility for the debt of the company. Only the assets of the company may be seized to meet any outstanding debt or financial obligations. This is different from other forms of business ownership like sole proprietorship, where the individual owner has to relinquish their assets and assume personal liability for the financial commitments of the company.
Other advantages of limited liability company formation include tax benefits and advantages. This good tax lawyer can help a limited company spot these opportunities for saving money and does take full advantage of the benefits given to limited companies by the government. When compared to more complex business structures, limited liability company formation requires much less paperwork. There are also few were requirements pertaining to keeping records and holding formal business meetings etc.
In the UK, limited liability company formation is an easy and quick process. The first step is to choose a name for your limited company. To find out if the name you choose is available, you will have to go through the list of all companies registered with the Companies House. This information is available from their website. If the name you choose has already been taken up, then you will have to select a new name because no two companies can have similar names. Since you are forming a limited company the name of your company will always end with the word ‘Limited’.
According to the rules pertaining to limited liability company formation in the UK, a new limited company requires at least two people to act as the office bearers of the company. The presence of a company secretary is a must, and it is their duty to ensure that the company submits its annual returns on time.
Some people who choose to form their limited companies opt to do the formalities themselves. Often, a member of the family doubles up as the company secretary. But, if you are new to the process of business incorporation, or even if you have some experience but want to ensure a smooth process, it is better to use the services of a business start up firm. Such a firm will guide you through the intricacies of limited liability business formation. They will help you select an appropriate name, guide you through the process of allocating shares and advise you regarding tax efficient measures that you can take to boost your profit figures.
Online company formation services are quick, experienced and quite inexpensive. For a meager fee of £30 to £50, these services process your application and send you all the required documents that you can print out, fill up and send back. You may even consider buying a limited company off-the-shelf. These are companies that have already been formed by a business start-up service. On the payment of a fee, online services will transfer ownership of this ready-made limited company to you.
About the Author:Limited Company Formation - As part of one of the UK’s largest company registration agents, with 25 years experience, Company Formations 24.7 offer a fast, straightforward and professional service and have tailored three great company formation packages.
Article Source: ArticlesBase.com - Benefits of Limited Liability Company Formation