It´s a fact of life that everyone’s situation is different and just because something suits one person it doesn´t mean the same model will be right for another person.
The same can be said for businesses deciding whether to be a limited company or a sole trader.
A limited company is totally separate from the person or persons who form it. What that means in real terms is that you and your fellow directors or shareholders have ‘limited liability’ in that you are not personally liable for debts should your company have financial difficulties whereas a sole trader is. If you a setting up a business you have four options to consider what type of business you will be:
When deciding whether to act as a sole trader or form a limited company there are many things that will influence your final decision, but first and foremost consider the questions below: