What are the advantages of trading as a limited company?

Advantages of a Limited Company

The most attractive benefit of trading as a limited company is the aspect of limited liability, essentially this protects the personal assets of the officers should the company run into financial difficulties.

Many of the costs and administrative requirements associated with running a limited company are now not much more than those of a sole trader or partnership.

Limited companies instil added confidence in suppliers and creditors, many large organisations will only do business with limited companies.

Finally the ownership of a limited company can easily be divided up through the sale of shares these can be further used as a means of generating capital.