Sole trader vs limited company
Chapter 1 of 5
The idea
A company can save tax at higher profits — and costs you more paperwork at every level.
Two set-ups
As a sole trader, you and the business are the same for tax: profits are taxed as your income. A limited company is separate: it pays company tax on profits, and you take money out as salary or dividends. It also protects your personal assets if the business fails. Rules differ by country.
Predict first
At what profit level do many people start to consider a limited company (UK, rough guide)?
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