Sole trader vs limited company: Which business structure is right for you?
Choosing between operating as a sole trader or as a limited company is a key decision for UK entrepreneurs. In a sole trader setup, you and your business are legally the same person. This means you have total control over your business but also bear full personal liability for any debts. In contrast, a limited company is a separate legal entity owned by shareholders, giving you “limited liability” – your personal assets (house, car, savings) are generally protected if the business runs into trouble.
13.10.2025