Business Structure Comparisons

Side-by-side comparisons to help you choose the right UK business structure.

Featured Comparison

Ltd vs Sole Trader

The most common business structure decision: limited company or sole trader? Compare tax calculations at different profit levels, liability protection, admin costs, and find the break-even point (typically £30k profit).

Compare Ltd vs Sole Trader

Structure Overviews

What is a Limited Company?

Separate legal entity, limited liability, 19% Corporation Tax. Setup costs £12, better for profits above £30k.

7 min read

What is a Sole Trader?

Simplest structure, you and business are legally one, Income Tax + NI, unlimited liability. Easy setup, minimal admin.

6 min read

What is a Partnership?

Business with 2+ owners. General partnership (unlimited liability) or LLP (limited liability). Income Tax like sole trader.

6 min read

Direct Comparisons

Ltd vs Sole Trader

Side-by-side comparison with tax calculations at £20k, £30k, £50k, and £100k profit levels.

7 min read

Partnership vs Limited Company

When to choose partnership over limited company: liability, tax, flexibility, and multi-owner considerations.

6 min read

Director vs Shareholder

Understand the difference: director runs the company, shareholder owns it. Can be the same person in small companies.

4 min read

Decision Factors

Liability Protection
Limited company offers limited liability. Sole trader and general partnership have unlimited personal liability. LLP offers limited liability to partners.
Tax Treatment
Limited companies pay Corporation Tax (19-25%). Sole traders and partnerships pay Income Tax (20-45%) plus National Insurance.
Admin Burden
Sole trader: minimal. Partnership: partnership agreement needed. Limited company: annual accounts, confirmation statement, Corporation Tax return.
Setup & Running Costs
Sole trader: free setup, £300-800/year accountancy. Partnership: similar to sole trader. Limited company: £12 setup, £800-2,000/year accountancy.
Typical Decision Point
Limited company becomes more tax-efficient above £30k profit. Below that, sole trader's simplicity often wins.

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