A Limited Company holds further responsibilities such as:  Director’s Fiduciary Responsibilities, which are your legal obligations as a director

Due to this it can be more costly to set up a Limited Company, you should seek advice from a professional to decide whether becoming a Limited Company suits your requirements. 

It is much easier to set up as a Sole Trader and you only have to fill in a Self Assessment once per annum. You must register yourself as self-employed before 5th October in your second tax year. If you’re a Limited Company you will need to file an annual return as well as file annual accounts. You will need to file your first accounts 21 months after the date you registered with Companies House. When you register your business with Companies House you will automatically be registered for Corporation Tax at the same time. If you are the only director you will need to register yourself for PAYE. 

In order to incorporate your Limited Company there are fees involved. Here’s a link to HMRC’s website for further info

Details of Limited companies, including their accounts can easily be found by anyone wishing to access them on Companies House. Sole Trader information isn’t displayed publicly so it is more discreet.

Not all businesses are the same, what works for one business may not work for another. It’s important to choose the right structure to suit your requirements as it can have an impact on your business profitability and success.

If you’re still not quite sure of how to get started or what structure would suit you business please get in touch and we can help!