What is the best structure for your business: sole trader or limited company? Should you start as a sole trader and incorporate later on?
Sole Trader
This is when a business is owned and controlled by one person who takes all the decisions, responsibility and profits from the business they run. As a sole trader, there is no distinction between you and the business. You would be personally liable for any debts incurred by the business.
Limited Company
It can be set up with a share capital of as little as £1. Most limited companies are private companies limited by shares.

If you started running your business as a sole trader, the question of whether you should convert to a limited company is something that you should review on a regular basis.

The two main advantages of a limited company is that it offers a limited liability protection and that the limited company structure is generally more tax efficient if your profits exceed £15,000.

Sole Trader's advantages

EASIEST STRUCTURE TO SET UP
EASIEST WAY TO RUN A BUSINESS
LIMITED ADMINISTRATIVE OBLIGATIONS

LTD's advantages

LIMITED LIABILITY: THE COMPANY IS A SEPARATE LEGAL ENTITY
TAX SAVINGS AND TAX EFFICIENT REMUNERATION PLANNING
SOME COMPANIES WILL ONLY DO BUSINESS WITH LTD
How to proceed
If you are ready to register your limited company, we will process the request on the same day and the company will be created with 24 hours. This will enable you to start trading immediately.
What information do you need to set up a company?
  • full name

  • nationality

  • occupation

  • date of birth

Decisions to make:
  • The role each officer will play:
    director, secretary, shareholder.

  • The number of shares they will be allocated

Company name check

Don’t forget to check the company name you have chosen is available. Visit Companies House website.

References
Shell
DTZ
Bunge
Cymbio
ITV
Learning Tree International
Indigo Business
Nintendo UK
ACCA
ACCA

FRAccountants is accredited by the ACCA, which means we are wholly composed of Chartered Certified Accountants and covered by ACCA’s Group Consumer Credit Licence under the terms of the Consumer Credit Act 1974.

For more information

Call us now on or fill in our contact form for more information or to start the incorporation process.