If you are either:
- about to set up a new business; or
- already trading, but as a sole trader or a partnership,
now would be a good time to consider setting up a limited company to carry on your business.
The Chancellor’s recent Budget announcements of reductions in the rates of Corporation Tax mean that a limited company is an increasingly tax-attractive trading vehicle. Added to that are the facts that a limited company
- gives the peace of mind of limited liability for the business owners; and
- is a well-recognised and flexible entity that can easily accommodate external equity investment,
(unlike a sole trader or partnership).
While it is possible to incorporate a sole trader or partnership at any time, it is undoubtedly easier and cheaper to do it when the business is still young (or even at the planning stage).