In a highly competitive world, small businesses face many challenges. One of the biggest challenges is deciding whether to remain a sole trader or incorporate as a limited company. The choice you make will have legal, financial, and logistical implications for your business. Today, we want to share with you the story of one of our clients who made the leap and incorporated their business. We hope it will give you some insights and ideas when considering the best path for your own company.
The client in question had three sites and over 50 employees. They aspired to grow and thrive in their sector, but they knew they needed to make changes to achieve their goals. After a period of consultation with Mollio, the decision to incorporate their business was made, which meant creating a separate legal entity for their company. This decision allowed them to enjoy certain benefits such as limited liability, more favourable tax treatment, and easier access to finance.
However, incorporation was not a decision they took lightly. They needed to time the change for the least disruption as bank accounts had to be opened and all clients informed of the new system. Upgrade their financial software, change staff contracts and update all the necessary authorities and procedures. This is where we came in. We provided them with guidance and support throughout the transition and beyond. We helped our client to navigate the paperwork, registers, filings, and deadlines involved in incorporating a business.
One of the most significant changes we recommended was implementing software that streamlined and automated their accounting procedures. We chose a cloud-based solution that not only reduced the time and effort required to manage finances but also offered additional benefits. For example, the software synced with their bank feeds enabled OCR recognition of receipts, and integrated payroll. These features saved our client time, money, and stress. They no longer had to worry about manual data entry, duplication, or errors. Moreover, they could access real-time data that allowed them to make informed decisions about their business's financial health and future plans.
Another advantage of incorporation was that it allowed our client to focus on planning for tax efficiency and further business growth. As a limited company, they could take advantage of lower corporation tax rates, claim expenses and allowances more easily, and even offer shares or options to their employees. These benefits enabled them to reinvest more profit back into the business and expand their services.
They are currently looking to expand & develop an 'outdoor' nursery which will be the only one available in the area.
They also gained a higher profile and reputation as a company committed to growth and innovation.
Deciding to incorporate your business is not an easy one, but it can be a crucial one for success. It requires careful planning, professional guidance, and a long-term outlook. At our firm, we work with businesses to help them choose the right legal entity for their needs and goals. We support them through the process of incorporation, compliance, and growth. We believe that a company's success depends on its ability to adapt, innovate, and thrive. Incorporation is a step in the right direction for many businesses that want to expand, reduce risk, and enhance their reputation. If you're considering incorporating your business, we'd be happy to discuss your options and help you make the right decision for your future. Contact us today to schedule a consultation.
Mollio and Leesha are more than just our accountant – she has become a trusted friend of ours and the nurseries. Mollio worked with us from one nursery, moving us through the journey to owning and running three. They understand that small business like ours are constantly changing and support our busy business with concise and clear communication and they never shy'away from a personal visit on site when we need it and time is tight for us.
