If you have plans to start your business then you may have already thought what will best suit your needs, this could be as a sole trader, a partnership or a private limited company.
Let us first understand what these business types are:
Sole Traders / Self Employed
Sole traders are independent self-employed traders who are responsible for their losses in their business. They are allowed to keep their profits on their income after paying their taxes. It is easy to become sole trader. Sole traders have to register themselves with HMRC and maintain their records of sales and expenses.
When two or more people come together to run a business it is called a partnership. In a partnership partners share the profits and losses of the business. They also have to maintain their sales and expense records.
Private Limited Companies
A private limited company’s finances are separate from personal finances and they have a more organized setup with more reporting and management responsibilities. The formation is bigger hence the responsibilities too are bigger. Private Limited Companies have a limited liability which means the company is liable and not the individual.
How we can help
We have a vast experience with all types of businesses and would be happy to discuss your needs to ensure the business set up is the right one for you. We have lots of information to give to you to help you on your way to a successful business/company.