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Sole trader vs limited company

This page links the two new business-structure sites in the network and keeps the comparison grounded in real take-home outcomes, not theory alone.

Why structure decisions are rarely tax-only

A limited company can create more extraction options, but it also means payroll, company filing, separate accounts and more admin. The right choice depends on profit level, cash needs and tolerance for compliance work.

To keep the comparison fair, start with the same annual profit assumption on both sites and only change the structure variables.

Use the calculator

Jump back into the limited company calculator

The homepage calculator is the fastest way to turn this guidance into a concrete estimate for company tax, dividends and personal take-home.

FAQ

Frequently asked questions

Should I incorporate as soon as I cross a certain income?

Not automatically. The answer depends on how much profit you retain, how much you extract, your admin costs and your wider tax position.