This is one of the most common questions we are asked by, not just new businesses but well-established ones who are thinking of changing. Every business must have a legal structure and these are the most common for Owner Manged Businesses (OMB).
Each has its own pros and cons and we will take a look at these as we progress through the article and highlight what we look for when deciding what to recommend.
A sole trader is the most common legal entity for an OMB in the UK as it is generally the least complex.
A limited company is the second most popular form of legal entity for a business in the UK as it offers a number of benefits compared to a sole trader.
So, what should you be……?
Is not something that can be answered on a blog post on a website unfortunately. We would always advise you to sit down with an accountant to discuss what would be best for YOU as not only do the tax rules do change every year, where you want your business to go is a key item to be looked at.
That is where a trusted advisor like Mountain Top can help to save a business possibly considerable sums each year. If you would like to discuss your options please call us on 01752 914214.