As your business grows, the structure you started with may no longer be the right one.
Operating as a sole trader is straightforward and flexible but incorporating may offer advantages depending on your circumstances.
Six key factors to consider:
1. Profit levels – Is your current structure still tax-efficient?
2. Personal income – How much do you need to withdraw from the business?
3. Tax & National Insurance – Which structure works best for your circumstances?
4. Business risk – Would limited liability offer greater protection?
5. Compliance – Are you prepared for additional company reporting obligations?
6. Growth plans – Are you looking to expand, attract investors or retain profits?
Remember: Incorporating does not automatically mean paying less tax.
The real question is not simply which structure saves tax, but which structure best supports your business goals.
At May & Moy Management Accountants & Consultants, we help businesses make informed financial decisions.