If you’re starting a business or reviewing how your existing business is structured, one of the biggest decisions you will face is whether to trade as a sole trader vs limited company. The structure you choose can affect your tax bill, ability to get finance, personal liability, and even how your business is perceived.
In the latest episode of the SeavorChartered Podcast, Graeme, Liam and Francesca share honest, practical advice to help you make the right decision for your circumstances.
🎥 Watch the full podcast here:
What’s the Difference Between a Sole Trader and a Limited Company?
A sole trader is the simplest business structure. You run the business as an individual and are personally responsible for its debts. It’s popular with freelancers, tradespeople, and small service providers.
A limited company, on the other hand, is a separate legal entity. It has its own finances, and you – as the director/shareholder – have limited liability. This can offer tax advantages and greater credibility, but it also comes with more responsibility.
Key Topics Covered in the Podcast:
Tax Differences
We break down how income is taxed in both structures – including the impact of dividend tax, Corporation Tax and allowable expenses. Find out when the tax savings of a limited company really kick in, and when it might not be worth the admin.
When Should You Incorporate?
Incorporating too soon can be a mistake. We discuss the ideal time to switch, what to watch out for, and how to avoid unnecessary costs or complexity.
Can You Unincorporate?
Many people ask whether it’s easy to “go back” to being a sole trader if running a company becomes too much. We explain the disincorporation process – what’s possible, what’s not, and what HMRC expects.
Access to Finance
Lenders view sole traders and limited companies differently. We explore how being a director of a company can help or hinder your ability to raise finance, get a mortgage, or apply for business loans.
Should You Switch Structures?
There’s no one-size-fits-all answer – but the decision you make can have long-term implications for your profits, risk, and growth. We have helped hundreds of local businesses across Carlisle, Cumbria, and South Scotland navigate this question, and we’re here to help you too.
📞 Need Personal Advice?
If you’re unsure whether you should switch to a limited company – or you’re starting a new business and need expert support from day one – get in touch with our team.
We work with businesses across Carlisle, Penrith, Dumfries, Kendal, Workington, and beyond.
Watch the Podcast Now:
👉 Click here to watch on YouTube
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