For someone starting off in business working for themselves for the first time, one of the early questions to resolve is 'should I work through a company or as a sole trader?'
There is no simple answer to this question as there are both advantages and disadvantages. Even for those who do decide to be a sole trader when they start up, there may come a time later on when the question of operating through a company resurfaces.
There are many factors that need to be considered - company law, personal liability, commercial aspects, taking on employees, taxation, National Insurance and personal considerations. This factsheet does not attempt to provide an ideal solution, but to set out the technical differences that should be borne in mind when making the choice.
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