Sole trader or limited company? The one thing every business owner has thought about in detail and looked financial implications right? Well probably not, and there is no right answer that suits every business. But you should really compare the two routes and see which one is best for you.
Every business – no matter how big or small – must have a legal structure, with the bulk choosing to be either a sole trader or a limited company. An estimated 3.4 million operate as sole traders, with 1.9 million operating as limited companies – so what is the difference between the two? And which could be the best fit for your business?
First – some definitions