Choose your business structure

Selecting a business structure that best fits your growth plans

To register your business, you must choose your company structure.

You can either start as a sole trader, a partnership or as a limited company. All of these have different tax rules and liability considerations.

The most suitable option will depend on how quickly you plan to scale up your business.

• Sole trader. You’ll own the business exclusively and be entitled to all profits – but also liable for any losses.

• Partnership. Similar to the option above, but profit and liability are split between all founders.

• Limited company. A private company where your liability is only tied to the amount you have invested.

Register as a sole trader if you are:

✔️ Not sure how profitable your business will be

✔️ Prefer simplicity

✔️ Don’t want lots of admin.

Register as a limited company if you are:

✔️ Sure your business will be profitable

✔️ Sure you will grow quickly

✔️ Wanting to work with agencies

Which is cheaper? Sole Trader vs. Limited Company

It is important to note that the startup costs for a sole trader are much less when compared to a partnership or corporation.

All you need to become a registered sole trader is your national insurance number. Partnerships need to cover the legal cost of drafting a partnership agreement and other registration fees.

However, there is a tax incentive for registering as a limited company.

Sole traders pay 20%-45% income tax, whereas limited companies pay upwards of 19% corporation tax.