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Sole Trader or Limited Company

Discussion in 'CAD Forum' started by CADMAN, Oct 4, 2016.

  1. CADMAN

    CADMAN New Member

    Hi,

    I have been freelancing for about 5 years as a part time job, my main job is a 9-5 mon-fri. The freelance work is drawing up plans for planning applications or land registry compliant lease plans for landlords. I do not provide tender drawings for builders to be constructed. My income for the part time job is around £1k a year, however, im hoping to get back on it and try to drum up more business and hence make more money from now on whilst keeping my full time job. My full time job pays me £40k a year.

    I have been registered as a sole trader in 5 years and have been submitting my own tax returns, my expenditures are very low, for example fuel to get to the site and purchasing a OS map for each project. I am now thinking I would like to switch to a limited company. The reason being i would have more piece of mind knowing if one of my clients would sue me (which i very much doubt) my personal assets would not be touched, only what is within the limited company.

    What do you guys think? Are any of you who do similar work to me set up as a sole trader or limited company? Since my expenditure is low, chances of being sued is low, my income from freelance is low (at the moment) and work is not that frequent, probably 1 job every 3 months do you think it is worth setting up a limited company?

    I have tried to find an answer to the above question for my needs but have had no luck so please could you provide your opinions. many thanks.
     
  2. Dougmorrison

    Dougmorrison Member

    Hi,

    This is more about personal preference. A limited company is going to give you more protection but then there is going to be more paperwork and you will have to make your accounts available to the public. So potential clients can view your accounts (unless you are doing amazingly).

    Sorry I could be more helpful. A freelancer I know always said that becoming a Limited company but the only way to go but I have thought that a sole trader was better depends on your risk I guess.

    I hope that this helps?
     

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