How do I get limited liability?

In the case of limited companies or partnerships, the law considers them to be a separate legal entity which can exempt directors and shareholders from liability for the actions of the limited liability organisation unless they are fraudulent, negligent or unfair. It also means that a limited liability business operates separate financial accounts, and as a result directors and shareholders are not held financially liable beyond what they have already invested in the event that the business fails.

Limited liability is conferred by registration of your business with Companies House. The registration requirements vary depending on whether you intend to operate as a private or public limited company or a limited liability partnership. In all cases your company solicitor can complete registration which usually incurs a small fee. An LLP must have 2 or more members who are registered self-employed. They must submit their own tax returns each year, as well as submitting annual accounts for the partnership to Companies House.

A private limited company is the most popular form of limited liability company and must also be registered at Companies House. A private limited company must have at least one director, in person, over the age of 16. You or your company solicitor must submit an annual return and accounts to Companies House, and must register with the Her Majesty’s Revenue and Customs to pay corporation tax.

A public limited company is less common as it requires a minimum share capital of £50,000, a minimum of 2 directors over the age of 16 and a company secretary. The rules around the running of publically limited company are more complex and would require expert legal advice from a company solicitor to ensure that the business does not fall foul of the requirements.

Article Source: http://www.onlinearticlessite.com

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