There are many reasons to set up a limited company, but it all depends on your particular circumstances. It’s a big change, but it can be the best change you ever experience – and the smartest.

What is a limited company?

A limited company is a business structure that offers its members, shareholders and directors several benefits. This structure limits personal financial risks, as your personal finances are kept separate from the company’s finances. Therefore, your financial liability is limited and is controlled by the amount you choose to invest.

A limited company affords you the opportunity to define your brand and portray a professional image. You are able to run your business in a very tax-efficient way and take on work you wouldn’t be able to as a sole-trader.

There are two types of limited companies- those that trade publicly on the stock market (public limited company-PLCs) and those that are privately owned (private limited company-LTDs.)

There are a number of essential steps to take when wanting to set up your limited company. This infographic by 1st Contact explains the process of setting up a private limited company.