A limited company is a separate legal entity which exists under the authority granted by statute. A limited company has substantially all of the legal rights of an individual and is responsible for its own debts. It must also file tax returns and pay taxes on income it derives from its operations. Typically, the owners or shareholders of a limited company are protected from the liabilities of the business. However, when a limited company is small, creditors often require personal guarantees of the principle owners before extending credit. The legal protection afforded to the owners of a limited company can far outweigh the additional expense of starting and administering a limited company.

Sanders & Shaw offer a free initial consultation and full hard-copy versions of the New Business Kit. If you would like more information about selecting a legal entity for your business complete the form below or call us on 020 7569 7160.