What does it cost you to establish and run a company?

Establishing a company commits you to overhead and hassle

One thing is clear – the decision to set up a company is a substantial fixed cost commitment – both as a one-off cost and then annually. (Even if you don’t have sales, you will still need to pay this large overhead with bills to bookkeepers, accountants, lawyers, auditors on a regular basis. And it absorbs too much of your creative energy – the very thing your clients value you for.

Your business location is worth optimising – failure to do so commits you to greater deductions than you may need to pay

Most people’s business or company is structured in a way that they are liable to more Corporate Tax than need to pay, especially when their work is international.

(We have seen deductions of over half of net profit in some cases, when NI is taken into account – much higher even than we show in our example in the table.)

Correct structure helps your business to grow

Both of these factors – administration and poor structure create disincentives to innovative, grow and employ more staff.

The Hubconsult Member solution is for those who want to be efficient: minimise admin, downtime, and deductions

We believe the Hubconsult Member solution can tackle the problem of expensive incorporation for freelancers and SMEs.

It is a major stride towards business simplification.

We compare both the set up fees and then the annual costs, showing you an average estimate of what you can save. And the result is very good news for you!

Online, professional, safe, efficient

How is this possible? Economies of scale help you benefit from efficiency savings of one company rather than many while division of labour allows us to provide a more effective solution to you than your existing company structure could, which by the way also allows us to provide you with a better quality service, and a network for your business. (For example, Xero online accounting is included to ensure that you have a P&L record of your business.)

Admin costs proportionate to the size of your business

Unlike in the typical company scenario, your costs are not lumpy. Your costs grow proportionately as your income grows, giving you peace of mind. (We know some businesses where all of their income is consumed by their company overheads. We don’t want to let that to happen to you!)

As your business grows, that’s when you are best placed to make huge cost savings on your annual fees. We estimate over a quarter of your net profits, on average!

As a result, based on the modest example in our table, a typical Hubconsult Member freelancer will have recouped the cost of subscription after just a few months!

 

Leave a Reply

Your email address will not be published. Required fields are marked *