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Should I incorporate or not?

20 Mar 2017

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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The information in this guidance is intended for general information purposes only and does not constitute legal or professional advice. The IoD does not accept any responsibility for any loss which may arise from relying on information contained in this article. It is not a substitute for legal advice and specific and personal legal advice should be taken on any individual matter. IoD does not recommend any firms. The IoD is not accountable for the products, services, acts or omissions on the website(s) linked to this page. Website terms and conditions apply.

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