Many individuals opt to set up private limited companies, as structuring your business in this way allows your company's finances to be separated from your personal finances. Corporation tax must be paid out of any profits and the remaining profits available for distribution can then be paid as a dividend to shareholders. You can find out the current corporation tax rates here. Directors run limited companies and owe legal duties, primarily to the company and its shareholders. For further information read Private limited companies.
Setting up a private limited company can suit all sizes of business and provides various advantages over operating as a sole trader or partnership. One of the main advantages is the fact that liability is only limited to what you invest in the company. However this advantage also generates more paperwork and official documentation, which is published at Companies House.
If you choose to set up a private limited company, registration with Companies House is essential and this includes choosing a name which hasn't already been taken.