Eqlick
Small Business information and directory
Home     Online shop     Employment     Travel Destinations     Travel Information     Business     Directory     Weather     Buy On Line      
Forms_Of_Business     Newsletter      
Business Resources 

 

Sole Trader 

 
Advantages
Easy to setup
Make your own decision
Only need to register as self-employed
Taxed as self-employed
What you are taxed may be high when compared a limited commpany

  

Disadvantages
Responsible for the losses – all your personal property may be at risk.
A sole trader is limited in raising funds when compared with a limited company.

 

Limited Company 

 

Advantages

Liability id limites to amount invested in the company

Have more credibility with banks and other institutions, easier to raise more funds when compared to sole trader

Advantages in tax and pensions 

 

Disadvantages

You are required to file annual accounts

Compulsory Audit is required if annual turnover is more over £5.6million (starting with the financial yesr ending 30th of March 2005).

Limited companies are required to contribute higher National Insurance (NI) i.e. both employer and employee NI contributions.

 

For more details on, visit HMRC or call  0845 607 0143.