Many individuals decide to set up a limited company. For a lot of people, it is a great move, for others, it is something they instantly regret. If you fall into the latter category, do not make the mistake of thinking your decision is irreversible. You can easily decide to abort the limited company option and consequently use the services of an umbrella company instead. A lot of people tend to go down this path, as they soon realize the impact a limited company has on their usual life is too much to cope with. The hassle of administration and such like is something that is hard to predict until you actually experience it yourself. Keeping that in mind, read on to discover whether it is advisable for you to make the move from a limited company to using the services of an umbrella company or not…
One of the biggest signs that it is time for a change is if you literally feel like you are drowning in administrative work and paperwork. Are you constantly dealing with paperwork? Do you feel like you have far too many things to manage? If so, and the stress is too much, you should certainly consider going for the services offered by an umbrella company. After all, this paperwork is something that is never going to go away, and if it is becoming too much for you it is going to be distracting from the core of your business – i.e. what makes you money. Instead, an umbrella company would handle all of your paperwork for you. All you would literally have to do is submit your timesheet and expenses sheet. Sounds much more straightforward, right?
Aside from this, another sign that you should use an umbrella company is if you are struggling to keep on top of your taxes. This is something a lot of people find difficult. In fact, you will find that a lot of individuals aren’t even paying the right taxes, as they have struggled to understand what is required of them. This can result in hefty fines and sometimes worse. Moreover, you may know what is required of you, but you may be finding it difficult to put away the money and budget effectively. You need not worry about any of this if you make the switch to an umbrella company. They will handle all of your taxes for you and simply deposit your net profit into your bank account. It is as simple as that.
Last but not least, the final sign that perhaps you should consider making a move away from a LLC is if accounting fees are stinging you. This is something that is extremely relevant for those that do not work on a full-time basis. You will find yourself paying monthly fees for a service that you actually do not use that often. An umbrella company does not operate like this. Instead, you will only pay for the service when you work, and thus you will be much more efficient with your business expenditure.
Discover the top five qualities to look for in umbrella companies
Umbrella companies offer the ideal solution for anyone who is currently contracting or freelancing – no matter whether you intend to do this for the foreseeable future or merely for a couple of months until you find a new job. These companies take care of all of your taxes, invoices and paperwork. This makes your life a lot easier and also guarantees everything is handled above board, as you can be confident all of your taxes are paid properly.
The benefits of umbrella companies are there for all to see. However, if you take a look on the internet you will see that there are a huge number of these companies to choose from. It is important to ensure you find one offering an exceptional service. To guarantee this is the case, look out for the following five qualities…
- Timeliness
- Low Fees
- Convenience
- Good Reputation
- Good League Standing
If you can find a company that ticks those five boxes, you can be confident you are going to benefit from a high level of service. Thus, let’s elaborate a bit on each point. Firstly, timeliness relates to the quickness by which the company deposits your net profit into your bank account. It is likely that you won’t be able to wait weeks and weeks for the money you have earned. You want it available in your bank as soon as possible.
Aside from this, you should also seek a company offering their service at a competitive rate. This does not mean you should go for the cheapest service you can find. After all, you do want to make sure you benefit from high levels of quality. Anything between $20 and $40 per week is considered a good price for this. When it comes to convenience, it is advisable to find a company whereby you can submit your timesheets and expenses sheets online. If you have to post them this will only drag out the process.
Last but not least, you need to make sure the company has a good reputation and a good league standing as well. Let’s begin with the former. It is advisable to read reviews that have been left by previous clients. If they have been unhappy with the service they have received. you can rest assured that they will have taken to the internet to express their dissatisfaction. You will pick up on any red flags and know to stay away from the company in question.
In addition to this, if you take a look online you will see that there are various league tables in relation to umbrella companies. This ranks the companies based on qualities such as proficiency of the payroll team, customer service, price, joining process, leaving process and so on and so forth. If the company you are considering is ranked highly, this should provide you with the peace of mind that you have chosen wisely.
All in all, if you look out for the five qualities that have been mentioned you should have no trouble finding the perfect umbrella company for you.
