Limited Company or Sole Trader

[Matt Temple]

I am starting a new web development and marketing agency and want some advice on which way to go.

I don't plan on growing the company any more then what I and 1 helper can handle. Should I go the limited company route or stick it as a sole trader and what is the advantages of both.

 

[Scalloway]

If you are not planning to have a big business then being a sole trader may be the way to go. Limited companies require more formalities and expense.

 

[Matt Temple]

Hi Scalloway,

Thanks for your reply.

Is there really no advantages of been a limited company at the size of business I am looking.

From my, limited, research there is an element of risk in been a sole trader and a lot of expense and paperwork in a limited company.

 

[Scalloway]

The biggest advantage of a limited company is the limitation of liability. There also can be tax advantages though these have been eroded over the years.

 

[Nico Albrecht]

I'd always recommend a limited company for various tax reasons and better control regardless of size.