Sole trader or Limited Company?
Choosing between starting a limited company or setting up as a sole trader can be difficult, and one should simply evaluate carefully his own situation to make a good choice. There are many factors involved, such as the type of business, its turnover, your future plans, commercial risk level etc.
Sole Trader advantages
- No Ltd. company formation fees
- Tax return filing only once a year
- Less administrative work
Limited Company advantages
- You are separate from the company, so no personal possessions at risk
- Better tax planning opportunities
- Easier to grow