Many small businesses start out as a sole trader and at a certain point, people want to know whether they should have a company. As a Beany client, we will be thinking about this for you and you can, of course, always discuss this with your Beany accountant. However, as general points, here are the benefits:
- Shareholders’ liability is limited to the amount they paid for their shares
- Your tax rate is lower than top personal rates
- You have more credibility in the market
- It’s easier to sell a business because it’s a separate entity
- The business can grow indefinitely — it’s not tied to one person
- It’s easier to get funding and investment if needed
- At Beany, the cost for preparing annual accounts for either a sole trader or company are the same and filing of your companies office annual return is also included within your accounting fee.
But every situation is unique so please feel free to reach out to your accountant or our support@beany.com team. We're here to help.