sole trader limited company small business

Should You Be a Sole Trader or Limited Company?

Cressida Johns Business Advice

Full article with thanks to: moneydonut.co.uk/blog/21/09/sole-trader-or-limited-company-what-form-should-your-business-take Sole trader or limited company? What form should your business take? COVID-19 helped to push UK business start-up figures to new heights in 2020. According to the Centre for Entrepreneurs, annual year-on-year UK business formations in 2020 rocketed by 13% to 772,002. A key decision when starting a business is which legal structure should you choose when registering. The three most common options are sole trader, limited company and ordinary business partnership, although most people become a sole trader. Sole traders make up about 59% (3.5 million) of the total UK business population of 5.9 million. They include many freelancers, contractors and agency workers. Ordinary business partnership members make up about 7% (405,000) of the UK business population. Basically, these are sole traders who go into business together. The UK also has about two million (34%) active private limited companies. So, why do so …