Incorporation Suitability Assessments

Figures Please carry out incorporation suitability assessments for individuals and businesses considering transitioning to a limited company structure.

We provide a clear recommendation on whether incorporation is suitable, outlining the expected benefits, costs, and compliance obligations.

How we carry out incorporation suitability assessments for businesses

Initial Evaluation and Client Objectives

By understanding your existing business structure, financial performance, and long-term goals we can assess whether incorporation aligns with your objectives, such as tax efficiency, liability protection, and business growth potential. We also discuss the advantages and disadvantages of incorporation compared to remaining a sole trader or partnership.

Financial and Tax Analysis

We also evaluate the business’s profitability, projected income, and asset base to determine if the benefits of incorporation-such as corporation tax savings, dividend planning, and access to incorporation relief-will outweigh the costs and administrative requirements. Further considerations include the impact on personal and business tax liabilities, including eligibility for incorporation relief, which can defer capital gains tax on the transfer of business assets to the company.

Compliance and Legal Checks

We ensure that all legal requirements for incorporation are met. Compliance and legal checks include:

• checking the proposed company name, registered office, directors, and shareholders
• ensuring compliance with Companies House regulations
• verifying that none of the proposed officers are disqualified
• all necessary documentation is in order before submitting the incorporation application

Risk and Suitability Factors

We consider potential risks to your business, such as changes in regulatory obligations, increased reporting requirements, and the ability to manage a company structure. Also, we may review the reputation and integrity of the business, especially if the incorporation involves appointing directors or key management personnel.

Cost Considerations

We analyse the complexity, risks, and costs associated with incorporation and ongoing company administration, ensuring clients understand both benefits and obligations.

Let us guide you as consider incorporating your business and gain a clear recommendation on whether incorporation is suitable.

Lets Talk About Incorporation Suitability Assessments