Sole trader v limited company – which is the best option for us? This is a question that’s often asked of Stockport accountants, IN Accountancy.
“This can be answered quite easily by looking back to this morning’s meeting with one of our clients, whose business is car repairs,” said Sarah Harkness, Managing Director.
“He is currently a successful sole trader generating a net profit of around £20,000 and just by running his numbers through our calculator shows he would save 17% on his tax bill if he was trading as a limited company.”
So the answer is clear – limited company is usually the best option and as the company grows the savings will increase.
To find out more about the differences between different ways you can set up your business, take a look at our guide . If you are considering your options and you would like to know how tax savings could apply to your situation, please contact Sarah Harkness on 0161 456 9666.