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Can A Single Person Set Up A LLC?3/30/2018 So, you are ready to venture into business but still wondering which form you should take. This is the right place for you. It is absolutely true that many people find it overwhelming to figure out the ideal form of business to start from the many types. Even though starting your own business may require hard work and long working hours, it presents huge benefits that you cannot afford to ignore. Apart from being your own boss, you will have flexible schedules, increase your income, and benefit from tax perks. Setting up a Limited Liability Company (LLC) in the UK is a straightforward process and has several advantages to being a sole trader or in a partnership. In fact, a limited liability company is a hybrid entity combining the features of a partnership, corporation, and sole proprietorship. 5 Benefits of Starting An LLC Incorporating your new business as an LLC has a number of benefits which outweigh the perceived disadvantages. These may include: Protected personal assets- Unlike in sole proprietorship and general partnership, owners of LLCs are not personally responsible for the debts and liabilities of the business. This implies that creditors cannot take personal belongings such house and savings to recover their money. This, however, does mean that you will be reckless in your operations. Improved credibility- LLC requires that you have a permanent physical address. This is a sign of formal commitment to the business hence heightened credibility with suppliers, distributors, customers, partners, and employees. Flexible management structure- Limited liability companies have the freedom to establish an organizational structure that suits owners’ interests. It can be run by owners or outsourced managers. This is not the case with corporations. They must have a board of directors who are typically in charge of decision making for the business. Pass-through taxation- Limited liability companies do not remit taxes at the business level. The company’s income, including profits and losses, is passed through to the owner and is reflected on his/her personal income tax statement. Fewer restrictions and limited compliance requirements- Unlike corporations, LLCs have fewer as to whom or how many people can own the business. LLCs also have fewer formalities as well as annual requirements. Can You Start LLC Alone? Yes, you can. In the UK for example, one person can simply walk into Companies House and register a limited liability company. The application will require you to name a minimum of one shareholder and one director. Since you can hold both roles, you can set up the company alone provided you are at least 16 years of age and neither bankrupt nor a disqualified director. How to Set Up LLC in the UK LLCs are the most common form of business in the UK. This is because they are easy to set up. The quickest alternative is to register online through an accounting firm like WeAccountax. Our services are quick and affordable. Alternatively, you can use a lawyer or visit Company House. The basic requirements for registering an LLC include:
Choose to work with WeAccountax whenever you are applying for company registration or looking for online cheap chartered accountants in London and Milton Keynes. Give us a call to initiate your entrepreneurial journey. Our experienced business formation team will review your application then forward it to Companies House via online filing software. From our experience, your application may be approved within 3 hours from the time it’s filled.
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