Same-Day can be contacted via the following details:

The Registered Office Address.
Same-Day Company Services Limited
9, Perseverance Works
London
E2 8DD


Company Number: 1347553
Registered In England & Wales

Tel:

0207 613 8161

Fax:

0207 613 8162

Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Alternatively click here.

Many small businessmen think this means they can treat the business as an extension of themselves, or think they can take money from the accounts as and when they please.

However, as many find out when they later try to sell their business, or bring on an investor, this is not the case. The limited company is a separate legal person, and taking money that has not been authorised from the company, i.e. an unlawful distribution could land you in serious trouble with the courts. The company should be run properly and managed well. Any payments to you should be in the form of a salary, bonus or dividend payment and should be recorded in writing for the sake of record keeping.

Talking of  keeping records within a small business, a limited company is legally required to maintain day to day financial records and to retain these records for inspection for up to 3 years. If a company does not have these records, both the company and the directors have committed a criminal offence and can be subject to criminal penalties as a result. If a company is running a small business without keeping adequate records, it may be time to start considering their options, and it's better to start keeping those records right away to ensure they do not fall further behind.

There are naturally tax implications of running a small business as an incorporated entity. For example, if a company were to run a business making £10,000 in profit, they would be subject to corporation tax of 20% on that £10,000 and income tax on any money paid out as salary (assume £20,000 which would also be taxable at 20% and deductible from the profit figure, plus National Insurance contributions). The total tax paid in this instance would be £6,000 plus additional National Insurance contributions at both employee and employer level. However, were the money to be paid out in dividends from a £30,000 profit, National Insurance would no longer play a role, and the dividend payments would attract no additional tax.

Finally, running a small business requires the director to treat himself as an agent of the company, and to act in the best interests of the company rather than in his own interests as the major shareholder. Even where a director also owns 100% of the shares, it is his legal duty to act in the interest of the company and subsequent legal action from new shareholders tackling previous actions could see him liable to compensate the company in respect of any losses it sustained from him acting out with the scope of his duty.