What is a corporate?
A corporate has many derivatives, but for the most part is a business that is a separate legal entity to the people that own and/or run it.
What is involved? What should I consider before becoming a corporate?
Often referred to as “going Limited”, the business owners gain a degree of protection from claims against them as it is the company providing the service, not the individual.
In certain industries this is highly desirable and much more of an incentive than any tax related savings you might be able to realise through a corporate structure.
The advantage you have is that, if you do not need to take all of the money out of the business then you will only be taxed on what you do take. Unlike being a sole trader or a partnership.
The downside is that you cannot just take what you want, when you want or need it. A company’s money does not belong to you, even if you are the sole director and own all of the shares. You just happen to own a company that has some cash.
The administration to structure an effective corporate remuneration plan (i.e. how the money is going to end up in your pocket and how much of it you can keep before the tax man takes his slice) is demanding. This is where
Having a great accountant is vital
Because this gives us a chance to become personal, sit down together, and really talk about all of your plans and aspirations.
Short, medium and long term plans also need to be factored in.
Don’t corporates have to report their results publicly?
Yes they do. We will need to discuss exactly what that will entail for you but a limited amount of information does go on the public register and is available to download for free.
If you know of a company, take a look at what they have to show:
You can also use this link to SEE IF YOUR COMPANY NAME IS AVAILABLE.
Type in as many searches as you like. It’s a quick and free way to see how many people may already have hatched your idea.
Owning the company name gives you legal title to use the name in business.
Try forming a company with “Virgin” in the name, or “Coke” and you will soon be greeted by solicitors looking to protect their clients’ intellectual property and trading names.
Sometimes it is worth having a corporate just to protect the trading name of your sole trade or partnership. The company can sit there, dormant – just protecting the name.
Get good advice and you won’t have to worry
Sure. No problem
Rules and regulations.
Don’t let them stop you making a success of your business.
Whether you’re an established company or even looking to incorporate, we have a solution for you.
Let us take care of the regulatory admin while you work on making your business great.
Read about corporate taxes here:
Contact us to talk some more: