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            <span>Why form a company</span>
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			<div class="dfb_nav left_nav roundBigTop"><h2 class="roundBigTop dfb_bg"><a href="/documents_for_business/models/">Documents for Business</a></h2><ul><li class="dfb_first"><a class="dfb_first dfb_first_color" href="/documents_for_business/workplace_and_environment/models/f-7354"><span>Workplace and Environment</span></a></li><li class="dfb_first"><a class="dfb_first dfb_first_color" href="/documents_for_business/tax_and_business/models/f-7353"><span>&raquo; Tax and Business</span></a><ul><li><a href="/documents_for_business/tax_and_business/checklists_for_business/models/f-7359" class="ularrow dfb_nav_path">&raquo; Checklists for business</a><ul><li ><a class="nav_ilast selected dfb_bg" href="/documents_for_business/tax_and_business/checklists_for_business/company_law/models/f-7393">&raquo; Company law</a></li><li ><a class="nav_ilast " href="/documents_for_business/tax_and_business/checklists_for_business/dealing_with_the_taxman/models/f-7394">&raquo; Dealing with the Taxman</a></li><li ><a class="nav_ilast " href="/documents_for_business/tax_and_business/checklists_for_business/debt_recovery/models/f-7395">&raquo; Debt recovery</a></li><li ><a class="nav_ilast " href="/documents_for_business/tax_and_business/checklists_for_business/health_and_safety/models/f-7396">&raquo; Health and safety</a></li><li ><a class="nav_ilast " href="/documents_for_business/tax_and_business/checklists_for_business/insurance/models/f-7397">&raquo; Insurance</a></li><li ><a class="nav_ilast " href="/documents_for_business/tax_and_business/checklists_for_business/intellectual_property/models/f-7398">&raquo; Intellectual property</a></li><li ><a class="nav_ilast " href="/documents_for_business/tax_and_business/checklists_for_business/miscellaneous/models/f-7399">&raquo; Miscellaneous</a></li><li ><a class="nav_ilast " href="/documents_for_business/tax_and_business/checklists_for_business/online_trading/models/f-7400">&raquo; Online trading</a></li><li ><a class="nav_ilast " href="/documents_for_business/tax_and_business/checklists_for_business/personnel/models/f-7401">&raquo; Personnel</a></li><li style="border-bottom:1px solid #0076a4;"><a class="nav_ilast " href="/documents_for_business/tax_and_business/checklists_for_business/property/models/f-7402">&raquo; Property</a></li></ul></li><li><a href="/documents_for_business/tax_and_business/company_tax/models/f-7355" class="ularrow">Company tax</a></li><li><a href="/documents_for_business/tax_and_business/documents__letters_and_contracts_for_business/models/f-7358" class="ularrow">Documents, letters and contracts for business</a></li><li><a href="/documents_for_business/tax_and_business/financial_management_and_accountancy/models/f-7920" class="ularrow">Financial management and accountancy</a></li><li><a href="/documents_for_business/tax_and_business/personal_tax/models/f-7356" class="ularrow">Personal tax</a></li><li><a href="/documents_for_business/tax_and_business/vat/models/f-7357" class="ularrow">VAT</a></li></ul></li></ul></div>            <div class="general_nav left_nav roundBigTop"><h2 class="roundBigTop">About</h2><ul><li ><a href="/aboutsite">Tips & Advice Business Database</a></li><li ><a href="/about">Us</a></li><!--<li ><a href="/contributors">Contributors</a></li>--></ul></div>            </div>
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            <div class="dfb_head gen_head">&nbsp;<div class="dfb_head_title"><h2 class="dfb_color">Documents for Business</h2>In excess of 1,000 customisable documents covering every conceivable business issue.</div></div>            	<div class="grid_8 alpha"><div class="doc_box shadow borderSolid"><h2 class="doc_header borderBottom dfb_color dfb_border">Introduction to this document</h2><div><h1 class="Introtitle"><span>Why form a company?</span></h1><p style="text-align:center; t"><span style="font-family:LiberationSans-Bold; font-weight:bold">O</span><span style="font-family:LiberationSans-Bold; font-weight:bold">ften, a </span><span style="font-family:LiberationSans-Bold; font-weight:bold">bus</span><span style="font-family:LiberationSans-Bold; font-weight:bold">iness</span><span style="font-family:LiberationSans-Bold; font-weight:bold"> </span><span style="font-family:LiberationSans-Bold; font-weight:bold">is </span><span style="font-family:LiberationSans-Bold; font-weight:bold">incorporated because </span><span style="font-family:LiberationSans-Bold; font-weight:bold">its pr</span><span style="font-family:LiberationSans-Bold; font-weight:bold">ofessional advisor </span><span style="font-family:LiberationSans-Bold; font-weight:bold">has recommended i</span><span style="font-family:LiberationSans-Bold; font-weight:bold">t as the most tax-efficient </span><span style="font-family:LiberationSans-Bold; font-weight:bold">way of </span><span style="font-family:LiberationSans-Bold; font-weight:bold">doing business. </span><span style="font-family:LiberationSans-Bold; font-weight:bold">But </span><span style="font-family:LiberationSans-Bold; font-weight:bold">are</span><span style="font-family:LiberationSans-Bold; font-weight:bold"> </span><span style="font-family:LiberationSans-Bold; font-weight:bold">the</span><span style="font-family:LiberationSans-Bold; font-weight:bold">re</span><span style="font-family:LiberationSans-Bold; font-weight:bold"> other b</span><span style="font-family:LiberationSans-Bold; font-weight:bold">enefits</span><span style="font-family:LiberationSans-Bold; font-weight:bold">, and a</span><span style="font-family:LiberationSans-Bold; font-weight:bold">re there any downsides</span><span style="font-family:LiberationSans-Bold; font-weight:bold">?</span></p><h2 class="Introsubtitle1"><span style="t">Taking the p</span><span style="t">lunge</span></h2><p class="Introbody"><span>Many businesses start off </span><span>being run</span><span> </span><span>in </span><span>a </span><span>sole trader or partnership </span><span>format</span><span>. Then, as business </span><span>becomes more established</span><span>, the</span><span> owners </span><span>may be </span><span>advised by </span><span>their accountant </span><span>or tax advisor </span><span>to </span><span>i</span><span>ncorpo</span><span>rate</span><span> for tax reasons</span><span>.</span><span> </span><span>T</span><span>his</span><span> </span><span>checklist runs through the other benefits of incorporating, as</span><span> well as giving a</span><span> heads-up </span><span>about</span><span> the drawbacks. </span><span>If you decide to incorporate your business or se</span><span>t up a </span><span>fresh new company</span><span> ready t</span><span>o trade</span><span>, s</span><span>ee our </span><span style="font-weight:bold">Forming a </span><span style="font-weight:bold">C</span><span style="font-weight:bold">ompany</span><span> </span><span>c</span><span>hecklist fo</span><span>r the low</span><span>down on </span><span>incorporation metho</span><span>ds. </span></p><h2 class="Introsubtitle1"><span style="t">Other options</span></h2><p class="Introbody"><span>Although a company limited by shares is the m</span><span>ost common form of </span><span>company, it</span><span>’</span><span>s not the o</span><span>nly option</span><span> - s</span><span>ee our </span><span style="font-weight:bold">B</span><span style="font-weight:bold">usiness </span><span style="font-weight:bold">F</span><span style="font-weight:bold">ormats</span><span> summary</span><span> for more</span><span>. </span></p><p class="Introbody"><span>&#xa0;</span></p></div></div></div><div class="grid_4 omega"><div class="doc_box roundBig borderSolid metadata"><h3 class="doc_header borderBottom dfb_color dfb_border">Document</h3><div class="borderSolid shadow floatLeft"><img src="https://d3sxy2z0ijo7zx.cloudfront.net/alf/uk/thumbs/824/24824.png" alt="Why form a company" /></div><div class="clear"></div><div class="centerText"><a href="/login/documents_for_business/tax_and_business/checklists_for_business/company_law/why_form_a_company/models/doc-kt_7393_24824_4282" class="roundBig doc_download">Download now</a><a href="#" class="small dfb_color" id="altdownload">Problems downloading ZIP files?</a></div><span class="docdate floatLeft">27.01.2023</span><div class="clear"></div><div><strong>File size:</strong> 18.19K</div><div class="floatLeft"><strong># Pages:</strong> </div><div class="floatRight"><strong>Format:</strong> <img src="/images/documents/ico/docx.gif" alt="" title=""/></div><div class="clear"></div></div><div id="reldocs" class="doc_box roundBig borderSolid doc_rel"><h3 class="doc_header borderBottom dfb_color dfb_border">Related documents</h3><ul class="ul_doc_rel"><li><a href="/documents_for_business/tax_and_business/checklists_for_business/company_law/directors/models/doc-kt_7393_24815_4278">Directors</a></li><li><a href="/documents_for_business/tax_and_business/checklists_for_business/company_law/directors__liability/models/doc-kt_7393_24814_4270">Directors' liability</a></li><li><a href="/documents_for_business/tax_and_business/checklists_for_business/company_law/dividends/models/doc-kt_7393_24816_4262">Dividends</a></li><li><a href="/documents_for_business/tax_and_business/checklists_for_business/company_law/shareholders/models/doc-kt_7393_24821_4280">Shareholders</a></li><li><a href="/documents_for_business/tax_and_business/checklists_for_business/company_law/board_meetings/models/doc-kt_7393_24812_4284">Board meetings</a></li><li><a href="/documents_for_business/tax_and_business/checklists_for_business/company_law/models/f-7393">More...</a></li></ul></div><div id="reldocs" class="doc_box roundBig borderSolid doc_rel"><h3 class="doc_header borderBottom dfb_color dfb_border">Recommended documents</h3><ul class="ul_doc_rel"><li><a href="/documents_for_business/tax_and_business/company_tax/company_cars_and_vans/cars_and_car_allowances_policy/models/doc-kt_7372_24579_9369">Cars and car allowances policy</a></li><li><a href="//models/doc-kt___"></a></li><li><a href="/documents_for_business/workplace_and_environment/health_and_safety/construction/h_s_induction___site_based_staff/models/doc-kt_7420_93852_93840">H&S induction - 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