/ Business
Should I be a sole trader or a limited company?
Sole trader while profits are low and simplicity matters. Limited company for liability protection and tax efficiency as profits grow. Ask an accountant.
/ 01
The short version
This is genuinely an accountant question — but here's the shape of the decision.
/ 02
What actually matters
- • Sole trader: simple, cheap, personally liable.
- • Limited: separate legal entity, limited liability, more admin.
- • Limited often becomes tax-efficient somewhere around £30–40k profit.
- • Some clients and tenders prefer limited companies.
- • Limited company accounts are public at Companies House.
/ 03
The bit most people get wrong
Limited liability isn't absolute — directors can still be personally liable for wrongful trading or personal guarantees.
/ 04
What to do next
Get one hour with an accountant before deciding. It's the cheapest advice you'll buy this year.
/ 05
Where RIOT fits in
We're a small Colchester studio helping UK SMBs get business structure right without agency waste or freelancer flake. If you've read this far and you want a second opinion on your specific setup, book a 20-minute call and we'll tell you honestly whether it's worth doing anything at all.
We work with clients across Essex, Suffolk, London and the wider UK — and remotely with brands abroad. No lock-in, no monthly retainer minimums, no pretending your problem is bigger than it is.
/ FAQs
Common questions
Can I switch later?
Yes, and plenty of people do.
Does it affect my brand?
Only in the small print and legal footers.
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