Sole Trader vs Limited Company: Choosing Right Business Structure
In the journey of establishing a business in the UK, one crucial decision lies at the very foundation: choosing between operating as a sole trader or forming a limited company. Both structures have their pros and cons, and understanding the differences between these two business structures is important for informed decision making. In this comprehensive guide, we delve into the complexity of Sole Trader vs Limited Company , helping you choosing the right business structure with confidence. What Is a Sole Trader? A sole trader , also known as a sole proprietorship, is the simplest form of business structure in the UK. As a sole trader, you are the sole owner and operator of your business and the individual has full responsibility for the business’s operations, finances, and liabilities. This means you have complete control over decision-making and retain all profits generated by the business. Essentially, the sole trader and the business are one and the same in the eyes of the law.