Add the information into your business plan, to include
Company type chosen: Limited
Vector Buddy Ltd.
Why you have chosen it?
I have chosen Limited as the company base type because of the many advantages it offers:
- A Limited Company can elect to be taxed as a sole proprietor, partnership which provides flexibility.
- A limited liability company with multiple members that elects to be taxed as partnership may specially allocate the members’ distributive share of income, gain, loss, deduction, or credit via the company operating agreement on a basis other than the ownership percentage of each member so long as the rules contained in Treasury Regulations.
- Limited liability, meaning that the owners of the Limited Company, called members are protected from some or all liability for acts and debts of the Limited Compmany depending on laws.
- Much less administrative paperwork and record keeping than a corporation.
What the legal requirements are that you need to adhere to?
For a Limited company,
The company must be registered at Companies house
The company’s annual accounts must be filed at Companies house
Annual Returns (Form AR01) must be completed each year to ensure Companies House records the most up-to-date information about the company. This is subject to a modest annual fee.
HMRC must be informed if the company has any profits or taxable income on an annual basis.
Every limited company must complete an annual corporation tax return. Any liabilities must be paid within 9 months of the company year end.
All company employees must pay income tax and NICs on any income they receive
What roles/people does your company legally require?
What are the costs to register your business?
https://www.theformationscompany.com/page/value – On the Formations Company website, it costs just £4.99