Thinking about whether to operate as a limited company can feel like a big step, especially when tax, compliance and long-term planning are involved. We support business owners across North Devon, and beyond, to assess whether going limited is the right move, handle company formation and provide ongoing tax planning and compliance support. If your business is growing or changing, getting the structure right from the outset can shape your financial position for years to come.
Limited liability offers stronger personal protection
One of the biggest benefits of a limited company is the legal separation between you and your business. The company exists as its own entity, which means your personal assets are typically protected if the business runs into financial difficulty.
For business owners taking on larger contracts, employing staff or investing in equipment, this separation provides peace of mind and helps manage risk as the business grows.
Greater flexibility around tax planning
Limited companies can offer more flexibility when it comes to how income is taken from the business. Directors can combine salary and dividends in a tax-efficient way, based on current thresholds and allowances.
Corporation Tax applies to company profits, while personal tax is paid on income you extract from the business. This structure allows for forward planning, particularly when profits fluctuate year to year. The right approach depends on your figures, which is where tailored advice makes a real difference.
A more established and credible business image
Operating as a limited company often carries a stronger commercial perception. Many clients, suppliers and organisations prefer to work with Ltd companies, especially for higher-value or longer-term contracts.
Having “Ltd” in your business name signals commitment, professionalism and structure. For some industries, it can open doors that may be harder to access as a sole trader.
Clear separation between business and personal finances
A limited company has its own bank account, records and reporting obligations. While this brings added responsibility, it also creates clarity. Business income and expenses stay within the company, making it easier to track performance, manage cash flow and plan ahead.
Directors still have personal tax responsibilities, including Self-Assessment when receiving dividends or salary, but the separation often leads to better financial control overall.
A structure that supports long-term growth
For businesses with plans to reinvest profits, bring in shareholders or scale operations, a limited company structure is built for growth. Profits can be retained within the company, funding future investment without triggering immediate personal tax.
This approach suits business owners thinking beyond the current year and looking to build something sustainable over time.
Get clear advice before you decide
A limited company is not the right solution for every business. Profit levels, future plans and administrative responsibilities all matter when deciding how to operate.
We provide clear, practical advice on whether going Ltd suits your circumstances, manages the setup process and supports you with ongoing compliance once you are up and running. If you are reviewing your business structure or planning the next stage of growth, speaking to an accountant early can help you move forward with confidence.
Click below to send us an email and arrange your free 30-minute consultation to discuss whether going Ltd is the right move for your business in 2026.
(updated 2026)
