Accountancy: Why being a limited company is best for you
Setting yourself up as a limited company as opposed to a sole trader can be incredibly advantageous. No matter what type of business you are running, it’s essential to have a legal structure. A sole trader is a self-employed individual who is the only owner of their business. Limited companies are structures with their own legal identity and exist separately from their managers/directors and owners/shareholders, even when they are only run by one person who acts as both a director and shareholder.
Become a separate entity
One of the disadvantages of setting yourself up as a sole trader is that your business won’t be regarded as a separate entity from yourself if you run into financial problems. This means you are personally liable if your business goes into debt and you could lose personal assets. You may also find it hard to raise finance if you are a sole trader …