You might have thought about it for some time, but it’s easier than ever to set up a limited company and shake off the stigma (and risks) associated with being a sole trader. With a good chartered accountant in St Asaph, North Wales, setting up a limited company in North Wales and beyond is extremely easy – almost effortless – and the rewards are myriad and so varied.
More credibility is the first of the rewards you should experience as a limited company, and not as a sole trader. Some people in the business world are very guilty of feeling that freelancers are occasional hobbyists and shouldn’t be taken seriously. Unfortunately, not so much can be done about this. In a game of making yourself more attractive to contracts and customers, being a limited company is very advantageous as opposed to being a sole trader. Bigger businesses and the bigger contracts that they bring are locked to limited companies only, because of security issues.
Becoming a limited company can also give you some much needed distance away from the company, as well. The difference between sole traders and limited companies is that should something go wrong as a sole trader, your assets and your house may be seized for the sake of paying off what your business owes. As a limited company, nothing of the sort can happen, which of course affords you far more protection in the event of unforeseen circumstances making your business unviable in the long term.
Furthermore, it is very important to know that loans and mortgage access can also be directly influenced by your company status. Banks are far less likely to lend to a sole trader than a limited company in matters such as mortgages and business loans. Essentially, being the director of a limited company brings with it a lot of credibility and this should not be overlooked.
What’s important to mention is that there are a number of respectable accountants in North Wales which can assist you with matters of talking to the bank and also applying for loans and/or other funding for the road ahead.