Best Accountants in Bury

How do I choose between a company limited by shares and one limited by guarantee? To choose between a company limited by shares and a limited by guarantee, you should consider the following factors: 1. Your purpose and objectives: A company limited by shares is suitable for profit-making businesses, while a company limited by guarantee is suitable for non-profit or charitable businesses. 2. Your funding and financing: A company limited by shares can raise capital by issuing shares to investors, while a company limited by guarantee cannot issue shares and relies on donations, grants, or membership fees. 3. Your tax liability and benefits: A company limited by shares has a higher tax liability than a company limited by guarantee, which may enjoy tax exemptions or benefits depending on its objectives and activities. 4. Your members' rights and responsibilities: A company limited by shares has shareholders who have voting rights proportional to their shareholding, while a company limited by guarantee has members who have equal voting rights regardless of their contribution. A company limited by shares has shareholders who are entitled to dividends, while a company limited by guarantee has members who are not entitled to any profits. A company limited by shares has shareholders who are liable only to the extent of their unpaid shares, while a company limited by guarantee has members who are liable only to the extent of their guarantee amount.