Sole Trader vs Limited Company — Business Structure
Beyond tax — liability, credibility, pensions and selling
Spoke 4 — the non-tax factors in the structure decision.
Tax is only part of the structure decision — and increasingly not the deciding part. **Six factors beyond tax:** 1. **Limited liability** — sole trader is personally liable; Ltd protects personal assets 2. **Credibility & access** — some clients/lenders prefer Ltd 3. **Profit retention** — Ltd keeps profit at 19% CT; sole trader is taxed on all immediately 4. **Pension efficiency** — employer contributions: no NI, CT-deductible 5. **Selling/exit** — Ltd can be sold as entity (BADR on qualifying gains) 6. **Sole trader upsides** — simplicity, privacy (no public accounts), immediate profit access A higher-risk or growth-minded business often incorporates for liability/retention/exit even when the pure tax saving is modest. **Read the full guide at [rraccountants.uk/beyond-tax-limited-company](https://rraccountants.uk/beyond-tax-limited-company).**
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