IAAN Accountants

A sole trader or partnership is less complicated to set up, has much less paperwork, and offers more privacy than an incorporated business, whose details can be found through the business’s residence. but, sole traders have unlimited liability, which means if the business gets into debt, the proprietor is personally liable. additionally, tax rates on sole traders aren’t always as kind as they can be for limited companies.

in contrast to a sole trader, a limited company has the benefit of limited liability. because of this private assets aren’t exposed – you only stand to lose what you put into the company. limited corporations tend to be more tax-efficient than sole traders. but, there are more responsibilities to being a limited corporation, as such, there will be extra paperwork to complete yourself or your accountancy charges will be higher.