Limited Company vs Sole Trader - 5 Benefits of Each and How to Decide

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  • Опубликовано: 24 ноя 2024

Комментарии • 105

  • @tonydCFO
    @tonydCFO  4 года назад +6

    Are you unsure as to whether start your business as a sole trader or limited company? What are your views on which legal structure is most beneficial? Let us know in the comments below.

    • @shriradhashrikrishna8269
      @shriradhashrikrishna8269 3 года назад

      Hi can you please make a video on drop shipping i mean what taxes do a person need to pay in Uk if he wants to run a drop shipping business via shopify

    • @spidermain
      @spidermain 3 года назад +2

      @@shriradhashrikrishna8269 you seriously asked this when drop shipping is no different than any other business and it takes 2 minutes to Google search? Sorry dude you are bound to fail

    • @shahidmehmood6262
      @shahidmehmood6262 3 года назад

      I registered on ATA, could you share yax ordinance book of uk

    • @taryn4080
      @taryn4080 2 года назад

      @@spidermain lol solid response to trolls?

    • @jesusiscoming6817
      @jesusiscoming6817 2 года назад

      Yes, I'm unsure if to start as a LLC or sole trader.

  • @jb-nz8ie
    @jb-nz8ie 3 года назад +70

    as a 20 year old this is extremely helpful, i can’t believe you don’t learn this at school to be honest

    • @tonydCFO
      @tonydCFO  3 года назад +4

      So pleased you found this helpful, Joe!

    • @tonydCFO
      @tonydCFO  3 года назад +7

      Hi Joebsneakz IG, we tend to agree. Schools are too academic and fall badly short on financial skills.

    • @renegary1660
      @renegary1660 2 года назад

      Oh my god, please not this discussion about "school doesn't teach us taxes" again...

    • @tvenpyksas
      @tvenpyksas 2 года назад +1

      In school and college not point learn it . Gov program school shit . Just looking what best for gov but not for people… . Great video thank you 😊

    • @dvelop4975
      @dvelop4975 Год назад

      Schools are there to create workers not entrepreneurs,

  • @EmekaPeacewill
    @EmekaPeacewill Год назад +2

    This guy should be a news caster. Brilliant delivery

  • @eshanchowdhury8755
    @eshanchowdhury8755 Год назад +2

    Was showed this video at university, perfectly explained and delivered a clear understanding.

  • @calebeddy1949
    @calebeddy1949 2 года назад +13

    Nice video however. Where is the link to download the decision tool?

  • @Lord_Winston
    @Lord_Winston 3 года назад +8

    until 25.000-27.000 sole trader after this Ltd simply as that,to open a business you need to have profits Ltd for just to showoff it's a mistake that you will pay by your own pocket

  • @Lord_Winston
    @Lord_Winston 3 года назад +5

    Ltd mean that you have serious profits if you don't you will pay from your own account the Limited admin/accountant

  • @travellerseko
    @travellerseko 4 года назад +5

    Hi Tony. Thanks for all information you shared. Appreciate it.

    • @tonydCFO
      @tonydCFO  4 года назад +2

      Hi Serkan, thank you very much for your positive comment. If you ever need specific accounting and tax assistance, please don't hesitate to reach out to us at the following link:
      calendly.com/aidhan/i-have-a-query-and-need-to-talk-with-an-accountant

  • @antjamescox
    @antjamescox 2 года назад +4

    The decision aide tool is nowhere to be seen by clicking that link.

  • @dionisiocarmoneto
    @dionisiocarmoneto Год назад +1

    Good Information Tony! Very clear, concise and precise. I am a foreign entrepreneur from South America. As a comment or a suggestion, you did not mention anything about offshore companies: advantages, risks, tax, liabilities and property security. It would be a good idea to make these comparisons among such companies, what do you think? Also, include your address for consultation. Thanks.

  • @kerriewilliams872
    @kerriewilliams872 Год назад +1

    I can't seem to find the tool you discuss in your video?

  • @conoroneill1888
    @conoroneill1888 8 месяцев назад +1

    The free decision tool isnt there, it just sends you to a blog that says the tool exists but it doesnt tell you how to download it though.

  • @hayjay1130
    @hayjay1130 2 года назад +1

    Thank you such a useful video and straight to the point 😊

    • @tonydCFO
      @tonydCFO  2 года назад

      You're welcome Sonia 😊

  • @KizWhalifa.
    @KizWhalifa. 11 месяцев назад

    Starting a company seems way more technical, especially for a new comer

  • @rjbirdy2k
    @rjbirdy2k Год назад +1

    Hi how do i download the tool

  • @craigywild
    @craigywild Год назад +1

    Tony. I followed the link to you free decision tool download but cant find it?

  • @keithstewart511
    @keithstewart511 3 года назад +2

    clear and useful. Thanks

    • @tonydCFO
      @tonydCFO  3 года назад +1

      You're welcome Keith.

  • @ericyoung524
    @ericyoung524 Год назад

    Very informative. Thank you.🙂

  • @gatekeeperboxing5898
    @gatekeeperboxing5898 Месяц назад

    If you don't already have a limited company setup and you need to register for self assessment for the first time this year can you change your status between the time you register and the 31st January the following year ? or would it be better just to be a sole trader for the first year.

  • @winstonk400
    @winstonk400 2 года назад +1

    Awesome vid bud. Will definitely hit you up sometime.

    • @tonydCFO
      @tonydCFO  2 года назад

      You're welcome Send The Fire 😊

  • @pauloinuk902
    @pauloinuk902 3 года назад +4

    Hi. Just want to ask if I already have a limited company using it for a couple of years and then would like to add another business line which is totally different in nature under 1 limited company, how do I create it? At present I have 3 SIC registered, can I add another 3 SIC that is totally different? Thanks

    • @tonydCFO
      @tonydCFO  3 года назад

      Hi Paulo, so we can assist you with this request, why don't you book a 20 min discovery call which is free of charge. A qualified accountant can then help you in more detail. Book Here >>> aidhanfinancial.com/book-a-discovery-call

  • @renttobuyproperties
    @renttobuyproperties 3 года назад +1

    Great Video Aidhan

  • @kevinsyd2012
    @kevinsyd2012 Год назад +1

    Tony: can you please revisit this analysis based on the tax changes in the 2022 autumn statement? It seems to me that, other than VAT maybe, there will soon be no benefit to having a Ltd Co as a single director. Accounting costs for a Ltd Co are also increasing rapidly..! Thanks in advance.

    • @tonydCFO
      @tonydCFO  Год назад

      Hi Kevin Syd thank you for the suggestion 😊 I will put this on the production roadmap and release an updated version soon

  • @azzmanagram
    @azzmanagram 8 месяцев назад

    Excellent explainer video. Thank you! I'm off to use your Sole Trader V's Ltd Company score sheet. :)

  • @rasloonz8736
    @rasloonz8736 Год назад

    Hi, thanks for the info, I just started watching your videos, and I do enjoy them,
    My question is, how can someone protect digital assets by creating a limited company. In the current environment, which is not on the up, but with a long term vision in mind.

  • @zaynumar0
    @zaynumar0 3 года назад +2

    Good video , thank you

    • @tonydCFO
      @tonydCFO  3 года назад

      You're welcome Zayn.

  • @xkateelizabethx
    @xkateelizabethx 9 месяцев назад

    Can't see to find the link to download the decision maker - any help would be appreciated

  • @mrandroid2191
    @mrandroid2191 Год назад

    How do you dissolve a sole trader business?
    If a sole trader business was dormant do you need to dissolve?

  • @meahaeverson-dunkley6792
    @meahaeverson-dunkley6792 3 года назад +1

    I've been sent here from school

    • @tonydCFO
      @tonydCFO  3 года назад

      Welcome to our channel Meaha

  • @SandoTrini
    @SandoTrini 2 года назад

    Extremely helpful video. Thanks for sharing your advice

    • @tonydCFO
      @tonydCFO  2 года назад +1

      Hi SandoTrini thank you for your positive comment and support 😊 I'm really grateful that my content is useful and adds value to you.

  • @rizwanf5946
    @rizwanf5946 4 года назад +2

    Subscribed, thanks 👍

    • @tonydCFO
      @tonydCFO  4 года назад

      Much appreciated Rizwan.

  • @ShortsByPaul
    @ShortsByPaul Год назад

    Jeez , help me. I paint for a company and work nights for private customers. I do Send invoices but my evening work isn’t regular.
    But I have caught attention of a lot of customers. So it’s picking up slowly.What do I do let HMRC know I do both or how ?????

  • @Oh_my_Keung
    @Oh_my_Keung 8 месяцев назад

    Can’t find the free download tool document

  • @mictache
    @mictache Год назад

    Thanks for the great work with this video 😊
    not sure if you've covered this in a previous video, but what kind of company (LTD?) would I need if I were to plan on starting a youtube channel, maybe sell digital/physical products in the future? And under what SIC number/nature of business?
    Thanks in advance

  • @rhodaunuefevwa5138
    @rhodaunuefevwa5138 3 года назад +2

    Very useful Information, thank you so much I will be following you everywhere you go now 😂. Please guide me on this👉 I'm in the Uk, I'm trying to set up my skincare business but still doing my research on handmade cosmetics regulations and company registration. And your content has given clarity in some areas. I'm also looking at running a RUclips channel as well to talk about my Products and give some free recipes. My question is do I have to register my RUclips name and my actual skincare brand name separately? for example I use XXW on RUclips and I have SSB as my brand name/logo, do I have to register both names separately? I'm sorry if I sound confusing, but I do hope you do understand my question. Thanks again.

  • @ginnierose6317
    @ginnierose6317 2 года назад +3

    Hello Tony, thank you so much for a very informative video. I have been doing accounts for my husband for his sole trader business for 5 years, recently his profit has exceeded more than 50k and we are thinking if switching to limited company. Do you think we can save some tax doing so please? Wondering which one will be more tax efficient? Thank you 🙏

    • @tonydCFO
      @tonydCFO  2 года назад +2

      Hi Ginnie, I would suggest that in general, once your sole trader profits > £30,000 per annum, then you should start weighing up incorporation to a Ltd Co. Whether in your specific situation it would be more tax efficient, would need to be evaluated.

  • @EVOCAT89
    @EVOCAT89 Год назад

    If in full time employment and earning over £45k what do you recommend to go with?

  • @taryn4080
    @taryn4080 2 года назад +1

    Heyyy abit piste but your intro is awesome! How did you do the animation?

    • @tonydCFO
      @tonydCFO  2 года назад

      Hi taryn4080 thank you for your positive comment and support 😊 My video editor used Viddyoze to do the animation

  • @loveelroi4453
    @loveelroi4453 3 года назад +2

    Hi Tony right on time , when I needed you the most hahah... very helpful and you got my subscription and like too :-) I want to go into clothing business and they are asking me for seller permission , does it mean the sole trader or limited permission ? and if it can you get either one of them even tho I haven't started selling ? Thank you in advance

    • @rehmanaghafoor786
      @rehmanaghafoor786 8 месяцев назад

      Hi I just read your comment and now I’m in same situation that you were 2 years back. Can you please advise and suggest then how you closed your company by clearing your above asking queries?
      Thanks

  • @honestjohn8894
    @honestjohn8894 Год назад +1

    Hi Tony, nice and informative video. What if you have a job earning around £35,000 and also was a sole trader that was doing well but went Limited and due the market at a loss (Profits 2019 £333, 2020 £4790, 2021 was considerable due to covid) 2022 Went Limited but at a loss due to expanding premises but not making sales targets. I'm thinking of either closing the Limited company and go back to Sole Trader or I could keep the Limited company but work from home as I did before.

  • @otmanalami6621
    @otmanalami6621 Год назад

    do you have any idea of forming ltd for trading stocks and what accountant expertise do I need.. thanks for the video ^^

  • @kanwalarora4117
    @kanwalarora4117 Месяц назад

    I am a trader of sweets confectionery products and handicrafts from India seek's your guidance for retail sales activities in Christmas shopping events in UK

  • @solankipratik8071
    @solankipratik8071 2 года назад

    Can I register sole trader company using national insurance number?
    Because I don't have uk passport

  • @mariamatos1150
    @mariamatos1150 4 года назад +2

    What if my company does not make any money or lose money in the 1st year do I have to pay taxes ?

    • @tonydCFO
      @tonydCFO  4 года назад +1

      Hi Maria, if your Ltd Co makes 0 profit or losses, then no corporation tax is payable in that company year.

    • @AliBabaVlogsSub
      @AliBabaVlogsSub 3 года назад

      @@tonydCFO hi I'm sole trader on my 2nd Yr tax period n now I recieved and paid NI class 2 but I've nt made any profit yet no customers since reg to HMRC as sole trader so why do I have to pay NI class 2? Confused 😕 if I reg as Ltd will I have to pay tax n Corp tax even no profits the end year period? Thx

  • @trzagor2769
    @trzagor2769 3 года назад +1

    Thanks for that valuable information. I have registered a dormant limited company for a while . However, I am planning to start my business as a sole trader before turning to that dormant limited company once my business is proven profitable. I have made sure my sole trader business has a different name to avoid any coalition with the dormant limited company. Was that a bad strategy on my part??? I'm now seriously concern about my strategy.

    • @tonydCFO
      @tonydCFO  3 года назад +1

      Hi Tino, for your question, we recommend you have a call with one of our accountants who can advise. The call is max 20 mins and free of charge. You can book here >>> aidhanfinancial.com/book-a-discovery-call

  • @swamibrahmavadin5234
    @swamibrahmavadin5234 2 года назад

    So what ahppens if you as a business owner with LTD borrow a loan and you cannot pay back and you ltd is going to be bankrupt?

    • @tonydCFO
      @tonydCFO  2 года назад +1

      Hi Swami - if you cannot pay it back, then your LTD Co is at risk of becoming insolvent and therefore compulsory liquidation may be imposed by your creditors - I would advise you speak to your lender at your earliest in an attempt to re-structure the loan

  • @VLN-ho1pp
    @VLN-ho1pp Год назад

    I’m about to create a LTD company to buy property for BTL. Can you advise me that when incorporating the company WHAT IS the correct wording of the model articles have been incorporated regarding a sole director

    • @tonydCFO
      @tonydCFO  Год назад +1

      Hi V LN - in most cases the model articles will suffice - there are many reasons as to why you may want to amend the articles, so it depends on how you want to structure things - best speak to a qualified accountant directly as time is needed to go through carefully

    • @VLN-ho1pp
      @VLN-ho1pp Год назад

      @@tonydCFO many thanks..

  • @mattiaangelogasparini3252
    @mattiaangelogasparini3252 3 года назад +1

    Thank you for the useful video. I'm about to move to the Uk to work as a freelancer. My plan is to work as a freelancer both in the Uk and Italy. Basically, being a woodworker, in the Uk I would work for another company while in italy I would make my own pieces for private clients. Which of the two options would fit better my needs?
    thanks a lot

    • @tonydCFO
      @tonydCFO  3 года назад

      Hi Mattia thank you for your question. You can go along to our Q&A section where you can post your question and get a response from a qualified accountant or chartered tax advisor >>> accountingtaxacademy.com/qa-section/

  • @madamvite9975
    @madamvite9975 2 года назад

    Hello Aidhan ,So I am starting a cleaning business, from the video, a sole trader is better right?

    • @tonydCFO
      @tonydCFO  2 года назад

      Hi perfectpeace, there is no one size fits all to this. If you download the decision tool, then hopefully this can help you make an informed decision, based on your circumstances and objectives. I hope this helps.

  • @Chappo19901
    @Chappo19901 2 года назад

    Need some big advise what do you charge for your service

    • @tonydCFO
      @tonydCFO  2 года назад

      Hi Mark - you can book a discovery call with my affiliated partner here >>> aidhanfinancial.com/book-a-discovery-call

  • @frosty_soda
    @frosty_soda 2 года назад

    Can't get the link for decision mate, just keeps taking me to a video.

    • @tonydCFO
      @tonydCFO  2 года назад

      Hi Frosty - sorry about this we had a few tech issues - should be fixed now if you want try again

  • @vijetagupta2437
    @vijetagupta2437 3 года назад +2

    What

  • @minamollie
    @minamollie 2 года назад

    Hi I can’t download the tool unfortunately is there any other way?

    • @tonydCFO
      @tonydCFO  2 года назад

      Hi Mina - sorry about this, a few tech issues - we'll get resolved asap

    • @tonydCFO
      @tonydCFO  2 года назад +1

      Hi Mina - our links have been fixed so you can try again

    • @minedavies9688
      @minedavies9688 2 года назад

      @@tonydCFO thank you :)

  • @lorraine.-.
    @lorraine.-. 10 месяцев назад

    Great videos but your website layout, navigation & CTAs need a lot of work! The user experience isn’t great especially on mobile devices.
    I went to download the checklist & there is no option to do so. Same for multiple articles, no links for pdfs.
    The static message you have placed with an image of yourself takes up too much of the page!
    You clearly give sound tax advice but you need a better web designer!

  • @azzmanagram
    @azzmanagram 8 месяцев назад

    Hi Tony... The decision aide tool link takes me to a paragraph with no obvious links to the tool itself. Can you pop a link to the doc here at all?

  • @shanetew3479
    @shanetew3479 4 месяца назад

    No free tool

  • @Number6_
    @Number6_ Год назад

    they can take the kids and good luck to them.

  • @Sandie93
    @Sandie93 2 года назад

    Iiulikk

  • @house9464
    @house9464 2 года назад

    yiur web links don work

    • @tonydCFO
      @tonydCFO  2 года назад

      Hi Kam - sorry about this, a few tech issues - we'll get resolved asap

    • @tonydCFO
      @tonydCFO  2 года назад

      Hi Kam - are links are now working again - thank you for highlighting this with us :-)