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Sole Trader or Limited Company?

Q. If I have a contract with a company for 1 year and I need to set up my own business, do I have a limited business or sole trader?

A. We cannot advise you on whether to set up a limited company or operate as a sole trader.

There are many factors to consider, such as your personal financial situation, if you operate in the public sector, your probable IR35 status, how long you intend to trade for, whether the contract dictates a particular trading style, and so on. There is not a particular way of trading that you “should” take. Ultimately, this is your decision to make.

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1 thought on “Sole Trader or Limited Company?”

  1. Jamie

    While the question is ambiguous (with a company?
    is it direct with them? through an agency?)

    In my experience, most agencies will not deal with a sole trader, so in the UK contracting market, you are usually restricted to either Ltd or brolly.

    If you never intend to deal with agents fine, but something to consider.

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