Should I trade as a limited company or sole trade/partnership?

This question is not easily answered. However, by considering the many factors involved, we can help you decide. Some considerations are:

  • Limited liability – what is the risk of you incurring a large loss or becoming insolvent?
  • Public disclosure – limited companies must file accounts at Companies House, where they are available for public scrutiny.
  • Company law – is complex and onerous. Are you prepared to take this on, with the resulting higher costs of compliance?
  • Remuneration – what is the most tax efficient way for a director/shareholder to take cash out of the business?.
  • Tax and national insurance – there may be savings to be made as a limited company; but how do these savings weigh up against the additional responsibilities and restrictions?

Whether you decide to trade as a limited company or a sole trader/partnership, we can guide you through the registration process and provide ongoing support.

Links to further information:

http://www.hmrc.gov.uk/selfemployed/index.shtml

http://www.companieshouse.gov.uk/