Free guides made for real businesses like yours.
Sole trader or limited company? Partnership or LLP? Choosing the right structure from the start can save you thousands in tax and compliance headaches later. Here's what UK startups need to know.
The easiest and cheapest option to start. You’re taxed as an individual, and keep all profits. But you're also personally liable for debts and may pay more tax at higher profit levels. Best for low-risk, early-stage businesses.
You’re a separate legal entity. More paperwork, but better protection. Profits are taxed at corporation tax rates (currently 19–25%), and you can extract income via salary + dividends for tax efficiency. Great for scaling businesses.
Two or more people share profits, decisions, and liability. It’s simple, like sole trading, but shared. Risky if one partner racks up debt, unless you choose a **Limited Liability Partnership (LLP)** for protection.
Think about risk, tax efficiency, your future plans, and how you’ll be paid. If unsure — start simple, but build a roadmap. Switching structures later is possible, but it comes with admin and cost.
Going limited? You’ll need to file confirmation statements, manage directors, and keep statutory records. That’s where our Secretarial Services come in — keeping your business structure clean, compliant, and confidently managed.
There’s no one-size-fits-all. The right structure supports your goals, protects your risk, and keeps you tax-efficient. If you’re not sure, ask — we’ll help you map the best route forward.
💡 Choosing the right business structure can save you thousands. Our Secretarial Services and Tax Advisory ensure you stay protected and tax-efficient from day one.
Sole traders have less admin and simpler taxes, but pay higher rates once profits grow. Limited companies offer better tax efficiency and legal protection, but require more compliance. It depends on your risk, revenue, and goals.
Yes, many UK founders begin as sole traders, then incorporate once income grows. Switching is common, but timing and tax planning matter — so get advice before you make the move.
In a general partnership, partners share profits and personal liability. An LLP (Limited Liability Partnership) protects individual partners from each other’s debts — offering more security with the same tax treatment.
You’ll need to file annual accounts, confirmation statements, keep statutory registers, and follow Companies House rules. Our Secretarial Services handle all of this for you.
Book a free consultation and we’ll walk you through the pros and cons — so you can register with confidence.