Should I register as a sole trader or limited company?

Discussion in 'General Business Forum' started by ZedS, Sep 29, 2012.

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  1. ZedS

    ZedS UKBF Regular Free Member

    134 13

    I am in need of some advice. I recently decided to register my new freelance web design business and I registered it as a limited company via Companies House. It was successful and it is now a registered company. However, it seems I didn't do enough research on this and I confess, I rushed into it. The more I look into it, I realise that the legal and tax aspect of a limited company is a lot tougher and perhaps I should have just registered as a sole trader.

    Considering the fact that I have barely any capital, and am a new freelancer so I can't predict or guarantee how much I will make monthly: what would you advise? Is sole trader a better option for me, or should I stick to the limited company?

    And if I am to switch to becoming a sole trader:
    1. How would I go about removing the limited company I have registered?
    2. How to register as a sole trader and what are the taxes involved?
    3. Do I lose the legal protection of my company name, and do I get anything similar to a company number?

    I thought being a limited company would seem more professional as I can prove I'm registered in England & Wales and show my company number, plus it protects my personal assets if there are any legal disputes - BUT the legal and tax angles are looking scary for someone just starting out..

    Apologies for the long post, would really appreciate your advice.

    Thank you
    Posted: Sep 29, 2012 By: ZedS Member since: Sep 29, 2012
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