
Starting a new business? Get 40% off our accountancy services for 3 months! 😀
Limited companies are usually set up as they provide limited liability if the business should fail. A sole trader can be held liable for any debts in his business, possibly affecting his personal assets. However, a limited company can only lose the money invested in the company, without personal funds being seized. There are two types of limited company; public limited company and private limited company.
Shares of a public limited company can be bought by the general public, although the initial value of the shares must be at least £50,000. A private limited company may have a smaller share value and are not allowed to be sold to the general public. Shareholders are the owners of a limited company, and receive dividend payments every year, which is a share of any profit made. The amount of shares owned by a shareholder influences the ownership of the company.
The allocation of shares depends on whether the shareholders want to have equal ownership of the business. If a shareholder wants to own 100 percent of the issued shares, he would take the total amount; if 100 shares were available, he would take 100 shares. Two shareholders who want to own the shares equally between them would split the shares, 50 percent each. Any split is possible, depending on who has the greater share of the business. One shareholder may hold 80 of the shares, while the remaining 20 may be split between several other shareholders. Allocation of shares is a complex procedure which may require professional advice.
Subscribe to our newsletter to get accounting tips like this right to your inbox
When you set up in business as a contractor you might either work as a sole trader or as a limited company….
Read MoreSmall Business Saturday started in the US in 2010, on the first Saturday following Thanksgiving. It aims to encourage shoppers to consider…
Read MoreArchitecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…
Read MoreThe number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?
Please contact our sales team if you’re unsure
It is unlikely you will need this service, unless you are voluntarily registered for VAT.
Are you sure this is correct?
Call us on 020 3355 4047 if you’re not sure.
You only need this service if you want us to complete the bookkeeping on your behalf.
Would you prefer to complete your own bookkeeping?
Call us on 020 3355 4047 if you’re not sure.