5 Easy Steps to Setting Up a Limited Company

You’ve just decided that you are going to set up a limited company. Good, but what are you going to do next? Do you know where to start? Do you know what it involves?

It all sounds scary, but it’s actually pretty simple, and the account you choose to help you manage your company can handle most of it. Can’t wait to start your limited company? Then here are 5 steps to help you get started.

 

• Think About What You Need to Get Started

 

The beginning is always the hardest part. However, once you start what you need to do, things will go pretty smoothly. First of all, you need to think about a name for your company.

Think about something original that doesn’t contain offensive words, and find something that will fit the company. Don’t choose anything in the heat of the moment. For instance, your name doesn’t have to define what you do or sell. This is important in case you decide to expand or change in the future.

Also, think about who is going to be part of the company. It’s essential to have the right people.

 

• Understand What It Involves

 

To start a limited company the right way, you need to know what it means and involves.

Basically, a limited company is an organization that is also called a moral person in law. What this means? It means that it has its own identity and the business it does is under its own name. Therefore, it can acquire debt, make money and lose them, pay its own taxes and all of that like it’s a physical person.

Moreover, it has protection, so you don’t have to worry about losing your house, car or anything else.

 

• Get Help From a Specialist or Accountant

 

Forming a limited company will come with several problems as well, and you won’t be able to solve them all by yourself. For tax purposes and protection, working with an accountant or a specialist is the right choice when you have problems.

 

• Issue Shares

 

If the total amount of shares are divided proportionally t0 the capital, then you can include any shareholder that you want. Sometimes, it’s a good idea to sell one share to another person. This way, someone can be the tie-breaker in case there are disagreements.

Companies have different types of shares, and some of them are linked to some rules that are related to your company’s operations. If you need this kind of structure, you should consult a professional

 

• Register for VAT

 

Another important step is registering for VAT. It can be done online at the HMRC website, and it’s easy as well. There are accountants that can handle your VAT as well, but websites can help you calculate yourself and register.

Setting up a limited company is not easy, and that’s why you need to know which are the steps you should take in order to become successful. Hopefully, this article helped you.

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