Going LTD

[benedmonds]

I've been in a partnership for the last 6 years and all works fine but have over the years been told by some that we should form a LTD company. At present we just draw a salary and pay tax on the bussiness end of year profit.

 

How does being LTD work and what are the benifits?

 

I know there is some legal seperation from you and the business if things go wrong, and you have to file annual statements.

 

But other then that, how does it work day to day, you pay a small salary then take dividends.....to directors? What do you pay tax on? Can you pay different

amounts to different directors? Do you need a compay secratary?

 

Any informed advice appreciated.

[Peter]

The tax advantages are minute now.

 

If you are happy being a partnership but want limited liability, why not look into a limited liability partnership (LLP)?

 

The Business Link website has lots of useful info, but the person you really need to take advise from is your accountant.