Is there any benefits to becoming Ltd?

[groucho]

We've been trading since the seventies and have never registered the business name as we are not limited. What are the benefits of a limited company, if any?

[shadowninja]

Limited liablity.

[groucho]

shadowninja said:

Limited liablity.

Thanks for that. Where's that :tool: smilie when you need it.

[Eric Mc]

To be fair, that is the main advantage.

There can be some tax advantages - but you need to ensure that the company accounts are prepared carefully and you receive good advice on how you (as directors and/or shareholders) take your own personal income out of the company.

Companies are complicated accounts and tax wise and they add to the admin burden you have to face.
The legal separation of the business from your personal affairs means that tax matters double up as the company now has its own returns and computations to look after and you still have your personal tax affairs to mind.

As a result, accountancy fees are bound to rise - look at a doubling (at least )of what you are currently being charged.

Other areas of bureaucracy may increase too - the need to tregister for PAYE for example (something which may not have been necssary under your current set up).

To summarise

advantages - limited liability - opportunities to reduce tax

disadvantages - added compliance and bureaucracy - higher professional fees

[groucho]

Cheers Eric, at this point in time I'll think I'll leave it how it is.