One of the benefits of setting up your business as a limited company rather than as sole trader is the idea of limited liability. This means that you personally are not liable for any debt that your company gets into, and can’t be pursued for it if the company gets into difficulty or closes. Many lenders will ask to put a condition onto your borrowing in the form of a director’s or personal guarantee, in order to secure the finance. This article explores what a directors guarantee is and the pros and cons.
Entrepreneurs' relief is one of the methods the government uses to incentivise individuals to set up in business and to innovate. Once a business has gone from a start up to a successful enterprise then the owners may wish to sell up and reap the rewards of all their input and effort. This is the stage where Entrepreneurs' relief comes into play and here we explain what you need to know and some important do's and dont's