Creation of the entity
When setting up a business, you have many matters to consider. One of which is deciding whether to trade as an unincorporated business or to incorporate your company. There are many ways in which you can structure a business such as a sole trader, partnership, limited liability partnership and limited company.
Each option will have its advantages and disadvantages, and so it is worthwhile taking some time to talk to us and be confident in your decision for now and the future.
Business changes
When your business grows and/or changes in any way, the most appropriate structure and entity of the business may change too. This could include changes such as a takeover, merger, demerger and other reorganisations
Business changes and reorganisations are undertaken for many different reasons. The primary driver is usually for commercial reasons and to meet business objectives, but tax efficiency is always an important consideration.
Some examples where tax is likely to create an impact include the following:
A brief review with no commitment
Amanda is always pleased to advise you on the most appropriate form of entity and ownership for now and the future. She can provide a solution for optimum tax efficiency.
CLIENT CASE
Karl is a successful air conditioning engineer and had been trading for many years as a sole trader. He’d become increasingly busy and so with a growing turnover and client base, he took on a few additional staff members and his wife Sandra helped with the administration and office management.
The profits were growing and Karl was paying a considerable amount of tax as a higher rate taxpayer on his profits.
Alongside a few other reasons for incorporation, including risk, we recommended that Karl should incorporate his business and we handled that transition.
“Amanda and Emma handled all of the accounting and tax matters for the transfer of my sole trading business to incorporation into a company and I am so pleased to have their expertise. They have saved me and my pocket thousands of pounds”
Group of companies
Amanda regularly considers cases where a stand alone company isn’t suitable for the business and the business owners. For instance, a company that owns assets may cause concerns for the owner if there is a risk to the assets being passed to creditors, if the business fails.
In addition, very valuable inheritance tax reliefs can be lost when the criteria for the reliefs are not met. Amanda can advise you when any changes need to take place.
There are solutions that might involve creating a group of companies or drawing out any of the problematic element of the company.
Amanda is expert at providing a review and advising you of the most appropriate structure for all relevant taxes involved and she will take you through the steps of gaining reliefs.