The 12 Days of Starting Your Own Business. Day 2

Day 2 in our a series of articles covering some of the main considerations if you’re thinking of setting up your own business.

Having decided that the likely income from your business will be over £1,000, on Day 2 we’ll consider whether to be a sole trader / partnership or a limited company. There are many factors to take into account when deciding on the structure, such as risk – is the business in a risky sector, do you want the protection of limited personal liability by forming a company, are you starting off alone, or in partnership, are you expecting rapid growth, will you be employing people, do you need investment? Being a sole trader is the most popular structure in the UK at the moment, and you can move between structures, although it’s recognised as being easier to move from sole trader to limited company than to convert back from limited company to sole trader. Day 3 sees further things to consider on structure.