Business Setup & Legalbeginner
Limited Company
Definition
A legal business structure where the company is a separate legal entity from its owner. Your personal assets are protected from business debts.
Why it matters
As your revenue grows, a limited company often becomes more tax-efficient than sole trader. It also adds credibility and separates your personal and business finances.
Example
You form "RichGirl Ltd" at Companies House. The company pays Corporation Tax on its profits. You pay yourself a salary and dividends, often more tax-efficient than sole trader income tax.
Related terms
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