Sole Trader vs LTD Co
Episode description
In this episode, Shaz covers the main differences between a sole trader business and a limited company
He shares an informative overview of the benefits and looks at some of the different reliefs and allowances that can be claimed through a sole trader business and a limited company
KEY TAKEAWAYS
- The accounts are simpler with a sole trader business and there is more flexibility to add partners
- There is unlimited liability and you are personally responsible for any debts
- Losses can be carried forward but allowances and reliefs need to be used
- Finance and funding are lower for a sole trader business
- A limited company is a separate legal entity
- Do your remuneration planning and make sure you take out a salary
- The more profitable you are the better a limited company will work out
- A company car is a taxable benefit if you have a limited company
- With a limited company, you can have alphabet shares with different rights
- Articles of association have to be fit for purpose
BEST MOMENTS
‘Look at the areas you can plan for’
‘Most reliefs of allowances you either use them or lose them’
‘The government is incentivising people to have electric company cars
VALUABLE RESOURCES
shaz@aaa-accountants.co.uk
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on: