Q. I am due to set myself up as a limited company. As I understand it a law has been passed which allows dentists to do this.
Can you tell me the benefits and downsides for a dental associate, like myself, in setting up a limited company and the finances involved.
As we’re not accountants, I’ve asked Arun Mehra of Samera (specialist dental accountants) to comment.
A. The key advantage is the TAX savings for dentists running their businesses (and associates) as limited companies. The savings can be significant, especially for high rate tax payers.
The first step is to decide if incorporation is right for you. There are usually tax benefits in most cases but every situation is different and
incorporation is certainly not the answer for everyone.
Be aware that there will be downsides to going down the incorporation route so make sure you get specialist advice before you take the plunge.
Once you have weighed up all the factors and reached the conclusion that incorporation is right for you, speak to your accountant who will be able to guide you through the process.
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