Ltd Company or Sole Trader

[Vicmo]

I'm setting up my new company and cant decide whether it will be better to start off as a Sole Trader or LTD Company. I had my mind set on Ltd Company as it looks professional and has tax advantages. The other reason was I thought if the company failed you get more financial protection. But after attending a business meeting at WENTA about starting up a business he said I could start off as a Sole Trader.

I understand its more complicated to set up a Ltd Company and it costs more but what other good reasons are there to be as Sole Trader? I will be running this business on my own but are most Letting agents LTD Companies?

[King_Maker]

There is no definitive answer, as it depends on individual circumstances.

If the business is likely to make a Loss in the initial stages, then a sole trader is probably the better choice, as the loss can be set against other income to generate a tax refund. The business can always be incorporated later.

I suggest you speak to an accountant to review your exact position.