I am starting a retail clothes store. What type of company should I form?

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Hey - trying to start a retail clothes company in Watford. Is there a certain kind of company that retail companies usually opt for when they need to incorporate through Companies House? I don’t know if there are multiple options, but if there are, which option in your opinion is best?

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Yes, a retail store should be set up as a limited by shares company if you plan to operate it as a way to generate personal income. You will pay Corporation Tax (and possible VAT) on all taxable income, and you will pay yourself a salary and dividends through the company.

You could also operate as a sole trader but you will not enjoy limited liability for business debts, nor will you be able to pay yourself as tax-efficiently because all income generated through the business will be liable for Income Tax and National Insurance purposes.

10 months ago
 

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