Company or Sole Trader?

A key decision facing the new business is what business format to choose when starting out. Basically there are a number of options which will be influenced by factors such as:

  • How many of you will there be running the business?
  • What potential risks and liabilities will you face?
  • What are the tax implications of each option?
  • How much bureaucracy (red tape!) are you prepared to face?
  • Do you want to build a business with an assest value?


If you are setting up by yourself, there are two choices:

  •  Sole Trader
  • Private Limited Company


If there are two or more of you the choice is wider and adds:

  • Partnership
  • Limited Liability Partnership


I shall deal with each of these in separate articles to try to keep things as simple as possible!