DON FISHER & CO

Business Development Specialists and Chartered Accountants


 

Starting in business

Should you trade as a limited company or sole trader/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.

Useful links:

Inland Revenue website for new businesses.

Companies House

 

Office 309 Winston House 2 Dollis Park Finchley London N3 1HF T:020 8371 7899 F:020 8349 4785