Is a limited company the best entity for my business?

When starting a business, you can choose what type of entity you want to operate as. Some of the options are sole trader, partnership, or limited company. 

There will be advantages and disadvantages to each option, but careful consideration should be given as to which type of entity would be best for you by looking criteria such as any other income you may receive and the level of profits you expect to make. 

Your accountant would be best suited to sit down and look at the facts and your own personal circumstances to review which option maybe best for you. 

If you operate as a sole trader or a partnership, your accounts do not get published anywhere, the information is just incorporated into your self-assessment tax return which is only submitted to HMRC. 

If you are a limited company, there is a formal requirement to file your accounts with Companies House and although the accounts that are filed do not show the full information, what is filed is still available for any member of the public to access.

If you would like any advice or assistance in this area please contact us on 0141 632 1863 or use our simple online contact form to arrange a free initial consultation.

Date published 26 Aug 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.