What are the advantages and disadvantages of forming a limited company?
By forming a limited company you will be in control and there will be no third party administrator to deal with. You will be company director, operate the company bank account and be responsible for running the business. It is the most tax efficient way of working, so you will keep more of what you earn. You will be able to claim a wide range of expenses, from accountancy fees to equipment etc. You will be able to claim VAT back on a wide range of expenditure. Furthermore as a limited company you will have protection from liabilities for your company debt. So if it became insolvent you, as a director, would not be liable unless it could be proven you acted fraudulently or improperly under company law. On the downside, there will be more paperwork, as you will have to comply with company law requirements to file accounts and returns to Companies House and various other requirements. However you can appoint Duport as company secretary to take away some of that burden.
