This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Directorships and employing a company

Shared from Tax Insider: Directorships and employing a company
By Chris Thorpe, February 2024

Chris Thorpe points out how a company could benefit a business, and what directorship entails. 

When deciding whether to incorporate a business, tax is clearly a major factor; but it is not the only one, as a company is a separate legal entity – a body corporate, and one which needs to be properly managed by its officers. 

Rules and regulations  

A limited company’s constitution is contained within its ‘articles of association’, which specify the operational rules and regulations and essentially acts as a contract between the company’s owners and its directors.  

Company profits 

The first thing which many sole traders or partners need to realise is that the company’s profits are the company’s and not theirs; they cannot take drawings at will.  

This is one of our 2523 Premium articles

To see this article in full and unlock access to our complete library of 2523 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee