There are several different types of limited companies in the UK that can be set up. There are many different factors that will help you to determine what is right for you. Along with this, accountants in Coventry will also be able to assist you
Private limited company – limited by shares (Ltd.)
This is a private company and so, the public is unable to purchase shares of the business. As a result, the shareholders are liable for the percentage of investment they have made. So, if someone makes a 10% investment, they are responsible for 10% of the business. This is the most popular form of limited company in the UK. It is simple to set up online too.
Private limited company – limited by guarantee (LBG)
Commonly, this kind of company is a non-profit business or a charity and that means that individuals are not responsible for their share of investment as there are no shareholders. Therefore, there is a board that will be responsible for debts as they will act as guarantors. They will pay money to cover debts where required.
Public limited company (PLC)
In some ways, this is similar to a private limited company, limited by share. However, the real difference is that it will offer its shares to the public. Therefore, members of the public can hold shares in the company and with this comes more legal obligations. To go public, a company will need two directors as well as two shareholders including a company secretary and a minimum of £50,000 of issued share capital.
If you are local in Coventry and would like to have free advice about the structure of your business or potential business, call one of our offices for free advice.
Limited liability partnership (LLP)
This works in a similar way to a limited liability company, limited by shares but the difference is that there are partners instead of shareholders. The partners are responsible for an equal part of the business as well as their share of the business.
So, if a business has five partners, they will each be responsible for 20% of the business and this will also include any debts. This is a perfect structure if the partners want to have an equal share in involvement. Partners will also actively manage the business which is different to those businesses that have shareholders as they need to vote in order to elect a board of directors who then decide who should run the business.
Private unlimited company
There is no requirement for a private unlimited company to submit financial statements or even an annual return in the same way as other limited companies. What this means is that a private unlimited company can remain private. The structure will not have shareholders who have to take responsibility for their percentage of investment in the business. Therefore, all shareholders are responsible for business liabilities. As a result, if the business was to face any difficulties, they would be required to share the burden equally. These are not a common form of a limited company.
If you are considering becoming a limited company, then Tax Accountants in Coventry are on hand to help and assist you where ever required.