What does it mean to be a ‘limited’ company?

When you hear the word limited, what do you think? It sometimes brings up negative thoughts. For example, the project has met with limited success.

On other occasions, it can mean the exact opposite. A limited edition can mean the product is exclusive, more valuable or have special features. 

Sometimes, being limited can be really useful: speed limits, credit limits and the term of office of a US President.

But the most important limited, is the limited that sits behind the name of a business. Having ‘limited liability’ status means the company is an entity in its own right, and this has several advantages…

As long as the company name you want to use is available, (you can find out by using our company name checker), you’ll have exclusive rights to that name. 

Assuming no fraud has taken place, ‘limited liability’ means you will not be personally liable for any financial losses made by the business. A limited company can give you added protection, should things go wrong.

Because a limited company is a distinct entity from its owners, it may be a little easier for a company to secure business loans and investment.

A limited company may benefit from tax advantages. Including with regard to pensions, dividends and car ownership.

The company will exist beyond the life of its shareholders. If they retire or resign, the company will continue to exist and operate, which ensures security for employees. If the directors are the main shareholders, business decisions can be made quickly and easily, allowing for a successful business strategy.

Forming a limited company for your new business is an important and positive step.

We can help with the process and provide all the required paperwork for you, all fully complete and fully compliant.