Sole Trader vs Limited Company - Which Business Structure Is Right For You?

When starting or growing a business, one of the first decisions you’ll face is whether to operate as a sole trader or set up a limited company. Both have their benefits and considerations, and the right choice depends on your goals, finances, and future plans.

---

Sole Trader

A sole trader is the simplest way to run a business. You and your business are legally the same entity, meaning you keep all the profits but are personally responsible for any debts. This structure is easy to set up, has fewer reporting requirements, and offers flexibility. However, it also means your personal assets are at risk if something goes wrong.

Limited Company

A limited company is a separate legal entity from you. This offers limited liability, so your personal assets are generally protected if the business has debts. It can also be more tax-efficient in some situations and may appear more professional to clients or investors. On the flip side, there are stricter reporting obligations and more admin involved.

---

Which Should You Choose?

The decision isn’t always straightforward. Tax implications, liability, growth plans and even the image you want to project all play a role.

At Maison Accountants, we can help you decide on the right structure for your business. A short conversation can save you a lot of time, money, and stress later on.

Get in touch today to discuss your options with a chartered accountant who understands your business and your goals.

Contact Us