What to Consider before Setting up Your Limited Company

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Setting up your own limited company is a big step. And though it’s highly rewarding, there are also a number of things to consider before making the leap.

To help you to prepare for when the time comes, we’ve put together some of the questions you should consider.

Is there a demand for contractors in your industry?

Whether you’re new to contracting or you’ve previously worked under an umbrella, contracting under your own company will give you more freedom when it comes to finding work. And it’s good news as the need for contractors is always growing.

Before you go limited you should be sure that there are enough contracting opportunities in your industry. If you’re looking for support finding contracting jobs, give our post a look for inspiration.

Do you have a name for your limited company?

Establishing your company means that you will need a trading name. Your company name must be unique, inoffensive and cannot make false statements about what you do. As this name will represent you as a contractor, it is worth spending some time to find the right name.

There are a number of options to consider – your name or industry, for example. For more insight into how to choose the right name for you, check out our blog here.

Have you considered legal protection?

Owning a business comes with a number of risks. However, with the right preparation, you can ensure you have protection should you ever need it.

If you’re thinking of going limited, it’s a good idea to decide what kind of protection you will need. As a client of ClearSky, you have access to a number of benefits including business insurance from our partner Hiscox.

Are you prepared for the financial responsibilities?

As a limited company director, it will be your responsibility to pay tax and National Insurance contributions. You will also need to file your accounts at the end of each financial year.

Enlisting the help of an accountant who understands the unique requirements of a contractor can help to save you time and make your workload easier, especially in the early stages of your contracting career.

How can ClearSky help?

If you’re new to the world of contracting, your new responsibilities can be overwhelming. However, entrusting your finances to ClearSky means you will have an expert on hand to help you along every step of the way.

To find out how ClearSky can help, call the team on 0800 464 0338 or email bestadvice@clearskyaccounting.co.uk.