Private Limited Company

• What are some key points on a LTD?

  • can be small or large business
  • have limited liability
  • owners are known as shareholders
  • only friends and family can buy these shares
• What is a dividend?

  A percentage of profit the shareholders receive
• What are the advantages of a LTD?

  • limited liability
  • shares can be sold to raise money
  • shareholders have to be invited
  • shared decision making
• Why is the fact that shareholders having to invited an advantage?

  Protects the business from outside influence
• What are the disadvantages of an LTD?

  • more paperwork and costs to set up
  • financial information is public
  • if shares are sold the profit needs to be shared
  • time consuming to set up
• What do LTD companies pay?

  Corporation tax
• What is corporation tax?

  Tax on the profits of a business
• What type of paperwork will a LTD have to do?

  • register with Companies House
  • annual financial reports