10 x ADVANTAGES of a Limited Company | Starting a Ltd Company UK

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10 x ADVANTAGES of a Limited Company | Starting a Ltd Company UK

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Күн бұрын

The ADVANTAGES and DISADVANTAGES of setting up a private Limited company. What are the benefits of opening an Ltd company when starting a new business and how does having a Limited company compare vs being a sole trader?
I have been running Ltd companies for over 10 years and in this video, I share with you the real-world advantages and disadvantages of Ltd companies.
Advantages of Private Limited Company:
• Limited Liability (Personal and Business Finances Separate)
• Professional Image
• Name Protection
• Potential Tax Savings
• Basic Salary + Dividends (Link to Directors Salary 2020/2021 Below)
• National Insurance Avoidance
• Pension Contributions are Tax Deductible
• Income Can Be Spread Over Multiple Years
• Easier to Sell
• Only Costs £12 - www.gov.uk/set-up-limited-com...
Disadvantages of Private Limited Company:
• More Complex Accounting / Administration Requirements
• Higher Accountancy Costs
• Annual Accounts
• Annual Corporation Tax Return
• Annual Confirmation Statement (£13)
• Payroll and RTI
• Directors Details & Company Financials Available for Public Viewing
• Self-assessment Mandatory for Directors
How to Pay Yourself as a Ltd Company - Directors Salary 2020/2021:
• How to Pay Yourself as...
Are you thinking about setting up an ltd business? What are you thoughts on sole trader vs limited company? Let me know in the comments!

Пікірлер: 133

@HonestMoney 4 жыл бұрын

How to Pay Yourself from a Ltd Company (Directors Salary 2020/2021) kzfaq.info/get/bejne/Z7R-ZtGTxtq4daM.html

@MaggieVaz 3 жыл бұрын

Thank you so much

@maxx1nsane 3 жыл бұрын

Really good information, thank you for doing this! Could you make another video about starting a business while you're still employed? It is really hard to find information about this online. For example, the unknowns for me are the taxation process. What is the best way to start a business while being employed at the same time? How would that affect taxation with your employer? How would this affect your taxation within your new business? What should be your status within your business? Share holder, administrator, employee? I apologize if my questions don't make sense. Much appreciated.

@jadephoenixhoskins2243 3 жыл бұрын

I need help. can we talk over the phone or Instagram message ZODIAC BAR LONDON please. `I will pay you! Thanks

@kicikocani1 Жыл бұрын

finally some videos from uk thanks mate a looooot

@cityman5468 Жыл бұрын

Honest money you remain the best, cause you always make the best of educative videos 👍🏼❤️

@deejaygal 11 ай бұрын

Brilliant video, thanks! I have been offered a company car and quickly found out that trying to work out the true cost of owning it was a minefield. Now I understand 👍😎

@glove1748 2 ай бұрын

Absolutely brilliant videos, thank you! This would help me understand more in the taxation side of a business ❤.

@Jrutty474 4 жыл бұрын

Absolutely loved this thank you 😊

@serraios1989 4 жыл бұрын

Very informative video. Thanks Darren

@marlonranghel3224 3 жыл бұрын

thank you for this video. Helpful and informative

@Mike-jx2uj Жыл бұрын

Very helpful and solid advice, I'm a young lad just trying to cultivate knowledge- thank you!

@Zediaphh Жыл бұрын

me too mate, 23 own a graphics design business, opened a stocks and shares ISA and a savings account today now trying to give as little as possible to the taxman. Keep getting that knowledge mate its so important

@VideoManiacExtreme 3 жыл бұрын

Thanks a lot, really helpful.

@faceonnailsdonehairdid 4 жыл бұрын

Brilliant, thanks for this video. Very straight to the point a usual

@christopherwheatley7845 3 жыл бұрын

Helpful buddy 👍 thank you

@darrenmc4531 4 жыл бұрын

brilliant as always! looking forward to the print on demand video.

@topaztablin2185 4 жыл бұрын

Good video going to open a ltd company soon. Great information. I have subscribed 😀

@harrypalmer1391 Ай бұрын

Hiya, just wondering how this went. I’m planning on opening one soon aswell. Do you have any tips? Thanks

@Rokhsona 2 жыл бұрын

Thank you, I didn't know all this.

@kamranhussein868 3 жыл бұрын

very clear. Thanks

@joshess4799 2 жыл бұрын

Great video, really useful and informative. Thank you.

@UniqueDancerTay Жыл бұрын

Thank you for sharing. I have just found your video. Can you share a video comparing CIC Vs LTD? 💛

@annaboye8478 3 жыл бұрын

Thank you so much. Can you please explain self assessment in more detail.

@danmamo5849 3 жыл бұрын

I just came across your channel, just brilliant, clear to the point.

@ArtursBondars 4 ай бұрын

Thanks for the video

@alisonnorcross951 4 жыл бұрын

Love your video.

@munirobeidat7433 2 жыл бұрын

Good video man

@bigpofty 2 жыл бұрын

Informed, balanced and succinct. Much appreciated 👍

@cynthiaanaman689 3 жыл бұрын

Hello there thanks for all your help

@casperel4everr 4 жыл бұрын

Absolutely briliant video. Cheers young man

@cheruzaleming 3 жыл бұрын

please go into detail about self-assessment

@simonergodoy 4 жыл бұрын

Great channel 👏 👍 👌

@xpektayshun 9 ай бұрын

Excellent!

@karalistusk6149 2 жыл бұрын

Thank you man

@semiruu 4 жыл бұрын

would love to see a video on trademarking!

@fenet8717 3 жыл бұрын

thank you!!!

@user-bs7nb3xo3n 6 ай бұрын

thank you

@petrutarabuta5617 3 жыл бұрын

Thanks!

@andytrace Жыл бұрын

thanks

@snooopy85 4 жыл бұрын

Could you make a video on being the director of multiple companies please?

@foxnmfox 4 ай бұрын

Hi thanks for a simple video which explains it clearly ,can you confirm would I still have to pay cgt if I was to sell a property within the ltd

@AMIsmail22 3 жыл бұрын

Thanks 😊

@LA-fr7fx 3 жыл бұрын

Thank you

@evka24 5 ай бұрын

Thank u

@kennethbarr6842 4 жыл бұрын

Thanks the 3 Eco

@1998MrSam 3 жыл бұрын

You said you could do a separate video for tax savings, have you done one??

@blisterj 7 ай бұрын

Hi love your channel what credit card companies allow company card that is companies liability and not personal ?

@ace2c101 4 жыл бұрын

I have notice you own a few different type of business.Do you have a holding company? Is it the same process to create a holding company,and what are the advantages,and disadvantages of having one.

@2036scott 3 жыл бұрын

This is the same information I am looking for.

@stevebalmer9859 3 жыл бұрын

Darren....ive worked thru Ltd. Companies for 20 years now and wouldnt work any order way if I had the choice. However with the government now enforcing IR35 I'm now being forced by main client to either go paye or umbrella. Any chance of a video about umbrella companies versus page? Going paye I can see me having to pay employers NI as well even tho taxes paye ie. Employed....if you ask the agent who my employer is on that contract you get fobbed off !.....any thoughts on that ? nice clear videos as well

@fredfoz6730 3 жыл бұрын

Hi love the site just what I was looking for, can you advise I have started a jetwash / steam cleaning business but want to continue my full-time job which earns me £21000 per year approx, two reasons having a steady income and it can be a sporadic job seasonally& of course everything that's going on with covid 19 at the moment, any advice would be appreciated

@kaancetin719 Жыл бұрын

Is there any problem to withdraw the money from the company account to our personal account? I didn't understand the logic behind paying ourselve the wage. Or should we make extra payments (rest of the money) through dividends?

@darnellthomas599 2 жыл бұрын

Hi mate everything you said is clear as day don’t worry I just need some advice .. would you suggest being a ltd or self employed when selling online such has eBay and stuff pls get back to me

@juicyrecords9286 3 жыл бұрын

Thank youuuuuuuuuuuuuu

@victorruhle8908 3 жыл бұрын

Hi Darren, I'm a pensioner. Does that mean I am exempt from paying any pension contributions anyway?

@leilanieveritt4734 3 жыл бұрын

My partner and I have just set up his ltd company as a builder with over 30 yrs experience. We are going to take your advice and pay via dividends with the £732pm etc. But not sure how to do this in the first year without a full years trading?

@martynjukes482 3 жыл бұрын

As a tradesman I find limited companies work if you have employees and supply goods but if you're just supplying your own labour then sole trader works way better.

@slenap5305 3 жыл бұрын

Would love to see a video on copyright 😍

@alisonnorcross951 4 жыл бұрын

How do you structure if you want to leave a legacy to your family

@HealthglowsNet Жыл бұрын

Thank you for the great video. But please... could you speed DOWN with how fast you speak 🙏😊

@littlelegsjodie5703 Жыл бұрын

Hi hello Great videos you make Thank you for sharing 🙏 Please may I ask ….. If you owned a limited company that is a prize winning gaming website run correctly so not to break the lottery rules that could be a lot of cash coming in and a lot of cash going out in prizes You could potentially be taking Tens of thousands of pounds in selling the tickets but also you would be Spending tens of thousands of pounds on the prices that you give out So I really don’t know how this would work at the end of the financial year I truly welcome your advice kindest regards and kindest thoughts to you and all 🙏

@jjohanesson9139 2 жыл бұрын

I want to start a healthcare nursing agency and language agency.

@donitamariesandoval89 3 жыл бұрын

How to open LTD company as dropshipper if you're in the Philippines?

@natalielarsson8669 3 жыл бұрын

Can a US company become a director/shareholder of a UK company?

@chrisredbarhuahin717 Жыл бұрын

How much can the limited company pay into your pension

@tyriqt7199 7 ай бұрын

would you recommend this to someone who wants to put a large chunk of their profits from trading into, and then set it so it can pay them and some close family members on a monthly basis. it wouldn't be for any type of business, it's more a way to ensure that each month they'll receive money over a certain amount of years so they wouldn't have to work unless they want to.

@imageonworkwear3698 3 жыл бұрын

Great video Darren, really clear and easy to understand, made so much sense as a new director as of tomorrow!

@scoobydoo4419 3 жыл бұрын

How about a video of 10 advantages of being a sole trader?

@healthyhabits8215 3 жыл бұрын

There’s advantages but wouldn’t you worry about getting sued?

@kishoarjerin1732 Жыл бұрын

Hi I have an LTD company , can I use this company for eBay and Amazon both ? Thank you

@nicoletadanmccaan5602 3 жыл бұрын

Why do you call disadvantage these are obligations... totally different terms,,, anyway, thanks for this video!

@pbat118 Жыл бұрын

Who needs to know about a ltd company because I am currently dissabled and until the business makes money I would still need my benefits as it will struggle for ages?

@Steve_Van777 6 ай бұрын

I’ve been sole trader for a while now on CIS. We’ve been offered a job and they want a price for it and I figured a ltd company would be better as it’s a 40k+ job. I’m a little confused as we’re getting paid labor only. After paying our wages (12k) what out of the renaining 16k (24k for the 2 directors wages) is profit for dividends?

@francesca7580 10 ай бұрын

Very helpful video, but one thing got me confused: if I am paying myself a minimum salary and therefore I am 'employed' why do I need to submit a self assessment?

@jwb935 8 ай бұрын

That is for your dividend income and the income tax on those.

@DrillManga 3 жыл бұрын

Hmm... The disadvantages don't seem too bad, although it's stricter; is it just me?

@rowland5951 4 жыл бұрын

Do you open the LTD company or the bank account first?

@leonardshand7845 4 жыл бұрын

You need to have the Ltd company first. The bank cannot open an account as a limited company which does not exist, therefore not a legal entity

@Wired1200 3 жыл бұрын

I want to change my ltd address, and would like to know if I will receive a new Certificate of incorporation with my new address on it? I know you will receive it once you change your business name but wasn't sure if you will receive one if you change your address?

@richinfeels 3 жыл бұрын

If I plan to sell in the UK and live in sweden do I need an "Ltd" in sweden or in the UK? Thanks!

@jordanmorter5696 3 жыл бұрын

You can't run a UK company from Sweden

@aurimasliuberskis4827 7 ай бұрын

Guys like darren they dont tell us a lot things, they just lets us know basic obvious things.

@skoopqueen Жыл бұрын

Start that Company today.

@eadad4371 Жыл бұрын

Not quite long I started investing. I'm very curious and need help on how to enhance and increase my returns. Any good investment tips would be appreciated

@skoopqueen. Жыл бұрын

@@eadad4371 Alright so generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (REGINA LOUISE COLLARO) an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance. She is quite popular for her services so you might have heard of her. She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy...So I’ll advise you do get a good Investment advisor for yourself.

@eadad4371 Жыл бұрын

@@skoopqueen. That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?

@skoopqueen. Жыл бұрын

@@eadad4371 look her up on the internet and leave her a message she's quite popular for her services as she was recently featured on cnn. She can work with anyone irrespective of where their located

@emeldcentor1474 Жыл бұрын

@@skoopqueen. I have had the intentions of starting investing. But I always thought it was late and I think I need to stop procrastinating. I will definitely 🔍 Regina Louise Collaro and see what she can advise .Thanks a lot . This was of so much help to me .

@peterleggatt3642 Жыл бұрын

I thought it was not allowed to pay yourself a pension as the Director of a company?

@CJWls986 4 жыл бұрын

great video

@ashel755 4 жыл бұрын

Another fantastic video very well explained. Can you make a video on property purchase via limited company vs individual? Keep up the great work 👍🏼

@keithchegwin1222 Жыл бұрын

I'm planning on becoming a self employed DJ, I thought having a LTD was my only option, how else would I pay my tax? Thank you 😊

@davidscott3292 Жыл бұрын

You just submit an annual self-assessment return.

@keithchegwin1222 Жыл бұрын

@@davidscott3292 Thanks

@StartMan09 4 жыл бұрын

Great video - would be great to see a video on the paperwork a small business director will need to do i.e. annual returns, tax etc

@kitpimpuk7949 3 жыл бұрын

Good videos mate, I just started one to come off benefits and the admin side is quite simple when you understand how things are done

@paralogical 4 жыл бұрын

very well explained Daniel. Do you have any knowledge of registering a Trademark? i'm thinking of registering one soon for my online shop. thanks

@AngelikaDV 3 жыл бұрын

Can you please do a video on running multiple businesses under one limited company? So much info on the USA, nothing on KZfaq regarding doing this via a UK company.

@baileys_adventures2024 4 жыл бұрын

Hi Darren, keep up the videos on both amazon and the honest money, they are both great and have very valuable information! Do you have any content relating to running a ltd company while still in full time employment? Thanks.

@Daniel_Borisov 4 жыл бұрын

That's what I want to do - start fba whilst on full time employment. My employer confirmed that they are ok with the plan. I plan to use Juniper Lynx as accountant as they offer an all inclusive service for £120 per month, we discussed my business plan with FBA and my full time employment and were totally fine. I agree that a video for running a company whilst full time employed would be great, and I'd love another one for accountant companies recommendations. Apart from that, great video Darren! So much information in just 7 minutes and well structured. Thumbs up for the algorithm. Keep up the good stuff on both channels!

@HonestMoney 4 жыл бұрын

Thanks Calum, I'll have a think about what I could include in a video covering that scenario.

@fahad1604 3 жыл бұрын

Thanks for informative video. Is this applicable for UK branch of overseas companies? What is the process of setting up a UK branch of overseas company?

@LaraKnowsBest 3 жыл бұрын

Thanks for your your videos, the way you explain things really stick with me. Can you please make a video about pension and the most efficient way to invest as a limited company owner?..like what's best.. isa vs private etc..

@BOBTSeries 3 жыл бұрын

Hello, thank you for your video. I was told that as a limited company you do not file self assessment, could you pls expand on that? Thank you

@HimanshuvMaheshwari 2 жыл бұрын

Would love to see a video discussing about the potential tax saving. keep up the good work mate, Cheers!

@jennifertaylor5777 3 жыл бұрын

Hello, would you have any insite into VAT. best ways to pay less vat etc...you are brilliant at explaining these things.

@onlineuktest3763 3 жыл бұрын

Great video Darren. I opened a seller account as a Sole Trader in January 2021. I didn't start selling yet just created my listing and Ordered my product from China which supposes to arrive in April 2021. Do you think I SHOULD REGISTER A LIMITED COMPANY AND CHANGE IT NOW BEFORE I START SELLING ON AMAZON? OR DO YOU SUGGEST Continue as a Sole trader then Change it later.Many Thanks

@akocmatthew Жыл бұрын

Hi, can anyone help me please. I am a director of my limited company and i will resign and use someone as a director so I can be epmloyed as PAYE. This is for the purpose of mortgage. Lets say I earn £500 a week but want to Increase this salary. Can i take money from my personal savings or other bank account to transfer to my limited company account so i can pay myself more than £500 maybe around £800 for a few months til my mortgage get approved. Hope someone can help me with this. Thank you in advance.

@peterwylie 2 жыл бұрын

Great video Darren. One small point.... I don't think it is always a requirement for a director to complete a self-assessment. HMRC now states that where all of a director’s income is taxed at source and there is no other sources of income, then there is no need for them to register for self-assessment.

@RahimRahim-cc7rl 3 жыл бұрын

like like ike

@plummetplum Жыл бұрын

You forgot to mention the pain in the arse inside/outside IR35 argument.

@keaty1984 3 жыл бұрын

Love the videos , I started In April my own company selling bike light..it's taken me by surprise now turned over 170k...I was hoping to go flat rate VAT as I'm not claiming anything back, can this still be done if I go ltd company ?

@abdakd2154 4 жыл бұрын

Very useful, thank you for sharing. For someone who would like to set up a limited company using one of the services that provide a registered address, is it a good idea? if so, are there any recommendations? Thank you

@SikandarKhan-rq6pm 3 жыл бұрын

noice

@littletavy420 3 жыл бұрын

Any advice for hiring your first few staff? How would that affect the national insurance avoidance?

@JeebonZLopez 3 жыл бұрын

Is there a way to not have a salary at all as an employee of your own company and legally avoid paying income tax? And is there any way to invest in stocks/crypto through your corporation and save taxes on these?

@Entertainment_Chilli 3 жыл бұрын

Hi, I'm an Indian. I want to start my own Cosmetic company in UK. For foreign citizens how much amount is mandatory to start UK Ltd company? Please suggest 🤔🤔 or Can I start sole proprietorship ?

@Boneamps 2 жыл бұрын

Great video Darren! I like your straightforward and to the point style. It would be great if you could go into a bit of detail about the trademark bit for your business, and how much risk is there from legal trolls registering the trademark first and then suing you for it. Thanks!