Many businesses do not want to deal with sole traders - they feel they arent dealing with a proper business and will insist on only dealing with limited companies. By being a limited company you are gaining access to these types of businesses and more importantly not losing out on the people who don't mind either way whether you are limited or not. We've had lots of calls over the years where a frantic person rings in the morning and says "I am going to be awarded this contract but they need me to be a limited company and I need it by this afternoon, can you help me ?" ... and the answer is "of course we can"

The other, and more significant benefit is those words "Limited Liability". By forming a new limited company, you are creating a new legal entity, seperate from you, the owner / director of the company. It is the limited company that is entering into contracts and agreements and it is the limited company that is applying for loans etc. If the business fails, you, as the owner of the company are limited in your liability to the company by the number of shares you said you would purchase. If you said you would purchase 1 x £1 share then that is your liability to the company. Obviously there are some caveats - if you trade recklessly and irresponsibly or illegaly, and give a personal guarantee to businesses then you may be deemed liable for the debts of your business, however a properly trading company that isnt doing anything illegal ensures that if the business goes under, that the owners house, car, yacht, etc arent going to be sold to pay the company debts - unlike sole traders where there are no distinctions between the business and the person.

what do i do now ?

Our company formations control centre will give you more detail about our packages and lists of frequently asked questions and lots of optional extras like free business banking with HSBC, brass name plates for your office etc. Everything can be done online

but if you would prefer to speak with someone, you can call us on

0845 370 9610

and we will be more than happy to hand hold you through the process over the phone.