A limited liability company (LLC) is a corporate structure in the United States whereby the owners are not personally liable for the company’s debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.

Apple is a Public Limited Company, found by Steve Jobs and Steve Wozniak in 1976, which design, develop and sell their goods worldwide and operate in telecom and technology industry. Apple’s other goal is to remain the most dominant brand for technology. This aim motivates Apple and its internal stakeholders.

Limited liability means the business owners’ liability for debts is restricted to the amount they put into the business. With unlimited liability, the business owner is personally responsible for any loss the business makes.

Limited companies limit the liability of a corporate loss to the business and do not impact the private assets of owners or investors.

A limited company is an organisation that you set up to run your business. This means that each shareholder’s responsibility for financial liability is limited by the value of the shares that they own but have not paid for. Company directors of such companies are not responsible for business debts.

Broadly speaking, limited companies stand to be more tax efficient than sole traders, as rather than paying Income Tax they pay Corporation Tax on their profits. Once you’ve registered a company name nobody else can use it, in contrast to sole traders who aren’t offered the same protection.

Paying yourself in dividends You can either reinvest your profit into the company or take it out and pay shareholders by issuing a dividend. The term “shareholder” simply refers to the owner(s) of the company. So, if you own and manage your limited company, you can pay yourself a dividend.

A limited company can be set up by a single individual who will be the sole shareholder and company director, or by multiple shareholders. Advantages of forming a limited company include: Liabilities such as debts or legal action are limited to the company.

A dormant company is simply a company that is ‘not trading’, so if you register your company under your chosen name and don’t start trading right away, you can leave it in its dormant state.

There is no time limit for keeping a company dormant, so you do not need to worry that Companies House will ‘strike-off’ your company through inactivity. As long as you keep your Annual Returns and Annual Accounts up to date with Companies House each year, you can leave your company in an ongoing dormant state.

It costs £12 and can be paid by debit or credit card or Paypal account. Your company is usually registered within 24 hours. If you do not want to use ‘limited’ in your company name you must register by post.

There are plenty of benefits to setting up a limited company, and although the chief one is the fact that your personal assets will not be at risk, there are other reasons to consider it, including: A limited company may appear to be a more professional and trustworthy outfit to potential clients.

Being self employed means that you will only need to deal with HMRC, and the relationship is likely to be very taxed based. The tax and HMRC relationship will continue if you trade through a Limited Company, but you will also have to work with Companies House.

The current rate of Corporation Tax for limited companies is 19% and you pay that on your total profits (minus allowable business expenses). Limited companies do not have to pay income tax or national insurance. Therefore, the amount of tax a limited company pays will depend on their profit in the tax year.

If you set up a limited company through 1st Formations, the registration process usually takes 3 to 6 working hours (subject to Companies House workload). If you choose to start trading straight away, your company is ‘active’ and you must register with HMRC for corporation tax within 3 months.

Set up a limited company: step by step

1. 1 Check if setting up a limited company is right for you Show.
2. Step 2 Choose a name Show.
3. Step 3 Choose directors and a company secretary Show.
4. Step 4 Decide who the shareholders or guarantors are Show.
5. Step 5 Prepare documents agreeing how to run your company Show.
6. Step 6 Check what records you’ll need to keep Show.

You can still be self-employed for a separate business and have your limited company, but any earnings from Ltd company to yourself would be classed as employment earnings. Thanks for the reply.