Do you want to convert your business from a sole trader to a limited company?
If you are running your business as a sole trader, are you certain that this is the approach which is best suited to you? It may be a good idea to review each year whether the sole trader entity continues to be right for you as there are various factors to take into consideration when making that decision.
Some things to take into account can be:
- Overall tax position
- Compliance requirements with Companies House
- Flexibility over owner’s drawings/remuneration
- Additional filing deadlines
- Financial protection
For example it may be more tax efficient to incorporate your business, i.e. run a limited company rather than a sole trader business, but you may not be willing to have to file additional accounts with Companies House and a corporation tax return in addition to your own personal tax return.
When we work with sole trader clients we review their personal situations each year and where we find that incorporation would be more suitable for them we offer to take care of that for them. In many cases this results in our clients incorporating their businesses to benefit from the advantages but without any of the hassle of the extra work involved as we do it all for them, leaving them to get on with running their businesses.
If you would like to chat about this or anything else, why not get in touch?
As a new small business, we were given the advice of ‘find a good accountant’. Beyond the Numbers have really been this for us.
The whole team are knowledgeable, professional and efficient. However they are also kind, positive and patient. This, for us, was essential as we really needed to be guided in this area. The team have done this so well, suggesting ideas, supporting our vision and all with compassion, clear instructions and patience.
We would not hesitate to recommend them to any small business.
Brian and Cheryl Henderson, Brian Henderson Family Butcher
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