What\u2019s the difference between a sole trader and a limited company? Check out our definitions, compare the advantages and disadvantages, and find out which legal structure best suits your business.<\/p>\n\n\n\n
Every business, no matter how big or small, needs a legal structure. You can choose to be either a sole trader, a partnership<\/a>, or a limited company. <\/p>\n\n\n\n Most businesses choose to be either a sole trader or a limited company, so we\u2019ve put a guide together answering the key questions on these two business types: <\/p>\n\n\n\n Whether you choose to set up as a limited company or sole trader, this is officially the legal structure of your business. The main differences between the two involve tax rates (as well as how you pay tax) and how much liability you have over your business \u2013 including debts and assets.<\/p>\n\n\n\n Sole traders are generally self-employed business owners<\/a>, whereas a limited company could have any number of employees. While setting up as a sole trader is easier than starting a limited company, it may not be the right fit for your business.<\/p>\n\n\n\n\n
Sole trader or limited company: what\u2019s the difference?<\/strong><\/h2>\n\n\n\n