Do you want to start your own business? Don’t know How to decide which type of company is right for you?
There are two types of companies that you can choose from when starting a business. Sole traders and limited companies. Both have their pros and cons. Understand your needs before making any decisions about which type of company is right for you.
This week’s weekly I Hate Numbers podcast makes the decision process easier. I outline the differences between sole traders and limited companies in an easy-to-understand way. I also includes some helpful tips on how to decide if one or both types of businesses would be best for your situation.
Listen to find out more!
Sole trader versus limited company
Sole traders are just that – they trade on their own. They have no legal protection for themselves or their assets in case of bankruptcy. Limited companies offer this protection by giving owners limited liability, but it also comes with more admin and duties for directors.
It’s important to understand what your needs are before making any decisions about which type of company is right for you.
This week’s podcast of I Hate Numbers will help make things clearer. Moreover you can find out if sole trading or becoming a limited company is best for your business. You will be able to see the pros and cons of each option, as well as seeing what’s what needs to be done when setting up either one.
Listen to find out more!
What about your business risk and responsibilities?
For many smaller businesses being a sole trader offers a few financial advantages, but it also brings an increased level of risk.
Becoming a limited company can protect owners from these risks by giving them limited liability, but more admin and duties for the directors.
The difference between these two structures has to do with how they see you as an individual and your business. With a limited company, you don’t have liability for any debts or losses but if you are a sole trader then the law sees you and your business as the same so in this case, if there’s any debt or loss then it will be seen as your personal responsibility.
If this sounds like something that you are looking at then I highly recommend you subscribe to find out more. I also have some great resources on our site to help make sure everything goes smoothly when setting up either of these options. So, take some time today to explore all the information I’ve put together just for you!
Listen to find out more!
What next
You do not have to worry about making this decision alone! Contact us to see how we can help How to decide which type of company is right for you? Our news section, FREE online calculators is there for you. Just click here now to get started!
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Links
https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288
https://play.google.com/music/m/I3pvpztpjvjw6yrw2kctmtyckam?t=I_Hate_Numbers
https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins
https://www.stitcher.com/podcast/proactiveresolutionss-podcast
https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/