Is there a good time for a sole trader to switch to a limited company?

Many people wonder if there’s a specific profit level that makes this change worthwhile. Generally, if your profits are taking you into the higher rate tax bracket, it might be time to think about the benefits of a limited company.

As a sole trader, you have simplicity and control, but you’re also personally responsible for any debts. A limited company, on the other hand, offers liability protection, which means your personal assets are safer. Plus, you could save on taxes if your profits are higher.

That said, running a limited company involves more admin work and costs, like filing annual accounts. It’s not just about the numbers; it’s about what feels right for your business.

This isn’t financial advice, though. Always consult with an expert to find the best path for your situation.

Have you thought about which structure suits you best? Get in touch.

info@kcaccountancyservices.co.uk
01691 674792