A limited company needs to pay for corporation tax based on its income and profits. The limited liability company should have a PAYE or “Pay As You Earn” system which is responsible for collecting income and paying for the income tax as well as remit contributions for the National Insurance from its employees which includes the company directors.
Using a self-assessment system, the LLC should be able to compute how much corporation tax should be paid. An accountant and an auditor are needed to handle such computations to avoid penalties.
You must register your company and contact your local HM Revenue and Customs Office and inform them about your company and your limited liability. Failure to comply will cost you additional penalty. When you register your company to the Registrar of Companies, they will submit the details of your limited liability to the HMRC, therefore coordinating with the local office is required.
Apart from registering your company and informing your local HMRC, there are other legal requirements that you should comply with to avoid penalties with regard to your limited liabilities. You should display your limited company’s name in your registered office or business establishment. You should also place your company’s name, office address and contact numbers in all the business stationery like business letters, invoices, receipts, cheques, order forms, emails and faxes.
If a company director’s name is included in the letter or he is the one signing the letter, then, all the company director’s names should also be included.
You must send all the registration documents and completed registration forms to the Registrar of Companies. You should receive a Certificate of Incorporation from the Registrar of Companies as proof that your limited company has been registered.
Aside from limited corporations, RTM Companies or Right to Manage Companies and Commonhold Associations should also follow rules of incorporation. RTM companies and Commonhold Associations are under the Commonhold and Leasehold Reform Act 2002. For RTM companies, the leaseholder can transfer the landlord’s responsibility of repairing and maintenance of the building to the RTM company. The company is limited by guarantee and must comply with the RTM Companies Regulation 2009. The name of your company should end with “RTM Company Ltd.” The Communities and Local Government website can be visited to see information and rules regarding RTM company names.
Commonhold can be seen in England and Wales. It is a type of land ownership and the company is limited by guarantee, with its memorandum and articles complying with the Commonhold Regulations of 2009. Information and regulations can be downloaded from the website of the Department for Constitutional Affairs.
Commonhold association can be an alternative to long-term leasing of properties. The name of the association should end with “Commonhold Association Limited”.
Jim F. Roberts has been expertly writing articles for 5 years on a variety of topics of interest. He finally discovered that starting a business requires a good knowledge on the types of company formations like solo ownership, Ltd., LLC, Limited Company and all the requirements in a business start-up.