Setting Up a Limited Company: A Tax-Efficient Strategy for Growth
As your business grows, the way you structure it can make a significant difference to your financial efficiency, tax position, and long-term success. For many entrepreneurs, contractors, and small business owners, forming a limited company is a strategic step that transforms how profits are earned, protected, and reinvested.
We help you understand when and why incorporating makes sense. Typically, once your profits exceed around £40,000–£50,000 per year, operating through a limited company becomes more tax-efficient than remaining a sole trader. The structure allows you to balance your income between salary and dividends, reducing personal tax and National Insurance while maximising take-home pay.
Beyond tax efficiency, a limited company brings credibility and protection. It separates your personal and business finances, safeguarding your personal assets and projecting a more professional image to clients, investors, and suppliers. The ability to issue shares and bring in new investors also makes incorporation ideal for businesses seeking to scale and attract funding.
We manage every step of your incorporation journey. From assessing your financial position and registering your company with Companies House, to setting up PAYE, VAT, and digital accounting systems, we ensure your transition is seamless and fully compliant. We also plan your tax structure—optimising the mix of salary, dividends, and pension contributions—to ensure maximum efficiency and peace of mind.
Our role doesn’t end at setup. We provide ongoing support through bookkeeping, payroll, VAT, and statutory accounts, ensuring your company remains compliant and your finances stay on track. Whether you’re launching your first venture or restructuring an existing business, our team combines expert tax planning with practical business insight to help you make informed, strategic decisions.
With LMJ Group, you gain more than an accountant—you gain a trusted advisor dedicated to helping you build, protect, and grow your business with confidence.




