SG’s 6 top tips for setting up a Limited Company as an IT Contractor

When you’re first starting out as an IT contractor and need to set up a Limited Company, it can be a really exciting time. With your skills, ambition, and strong work ethic, you’re ready to take the leap. However, it’s important to understand what incorporation entails. In this blog we’ve compiled a list of essential steps to maximise the chance of success for your brand new company.

1.Brush Up on Your Skills

Before deciding on a company name or determining the services you’ll offer, it’s crucial to research market demands. What skills are clients currently looking for? Have you got the expected certifications? Are you up to date on industry trends? Once you’re confident in entering the contracting market within your specialty and equipped with the expertise to impress clients, you can move on to researching a company name.

2. Choose a Limited Company Name

When selecting a Limited Company name, avoid being too wordy, ambiguous or confusing. Having to explain the meaning of your business name to potential clients can be tedious. It’s good to stand out from your competitors, but you don’t want to create an initial negative impression. You can use the gov.uk website to check whether the name you’re hoping to use it ok, and not been used already.

3. Match your company’s name with your new domain

After settling on a name, check if the corresponding domain name is available. This is crucial for establishing credibility with clients. If your company is named “Company ABC” but your website domain is “CompanyXYZPooleBournemouth.com,” it raises concerns. This may make you appear unprofessional and negligent of important details. Similarly, check any relevant social media sites you will be using to make sure a suitable account name is available.

Potential clients will pay close attention to these aspects of your business, so ensure consistency in your online presence.

It’s also important to check with Companies House formation services to see if any other registered business has a similar name to yours before purchasing a domain.

4. Register Your Company with Companies House

Once you’ve chosen a name, you can register your company online with Companies House. The online registration process will guide you through the necessary steps. This is a crucial task for your business and there’s a lot to cover so if you are finding anything difficult or unclear, ask us and we’ll help you.

When you enlist our services as your Limited Company IT contractor accountant, we can incorporate your company for free and handle the set up process, so there’s nothing for you to do! We do hundreds of company set-ups every year so know the process inside and out, and are happy to take this part of the process off your plate. Did we mention it’s also free?!

5. Hire an Accountant

One of the biggest concerns when setting up a Limited Company is making mistakes with paperwork. With numerous details to remember, unintentional omissions can lead to future issues. Without sufficient knowledge, you could be putting yourself at risk of unexpected tax bills, penalties and/or delays.

Hiring an accountant provides peace of mind. They can handle your annual returns, taxes, expenses, and dividends. They are well-versed in compliance, regulations, and deadlines, ensuring your finances are protected. Our team here at SG are experts in the sometimes complex and demanding requirements that come with being an IT contractor, and are able to make specific suggestions based on your personal and professional requirements. Leave the numbers to us and we’ll ensure setting up a Limited Company is the easiest part of becoming a contractor.

6. Set up a business bank account in your company’s name

It’s crucial to open a business account under your company’s name. Since a limited company is a separate legal entity, it should be operated independently from your personal bank account. Take a look at our page on the banking partners we currently work with, and for our FAQs to help answer any questions you may have about opening a business bank account.

How SG Accounting can help

At SG Accounting, we take pride in our comprehensive services, expert knowledge, and client support. If you need assistance at any point, feel free to get in touch. We’re here to help.

Our aim is for you to move forward with confidence, focusing solely on showcasing your professional strengths and exceeding your client’s expectations. Rest assured, you can delegate your accounting needs to us, knowing that we have you covered.