Should I choose limited company or be sole trader or use a umbrella company
An other important question for your business. It’s very specific to your situation and type of business, how much you expect to earn, do you have to buy etc.
Sole trader or limited company?
I have been starting with a limited company from the beginning. They both have advantages. If you are unsure about your business, how long you will run it you might start as a sole trader.
As a sole trader, the distinction between you and the business is minimal. You are not protected. That means any business debts become your debts and your personal assets. (that includes your house for instance).
A limited company is its own legal identity, so as a shareholder your liability is limited. If the business go bankrupt, your are not bankrupted.
Limited or umbrella company?
My answer is a 100% limited company, every umbrella company will take a BIG CUT OF YOUR BUSINESS. They don’t do much for you… Get a good accountant and go limited.
People choose Umbrella and the reason is they think with an “Umbrella company I can stop my business easily, with not that much paperwork”. First of all, with a good accountant opening a limited is done by them at no extra cost in general. If you decide to stop your business they will also help you. I honestly don’t think there is more os less paperwork.
