When you decide to go self-employed, choosing the right business is important. One of the first decisions most new business owners make is what type of business structure they should use. If you are looking to set your business up and start trading quickly, you will likely start as a sole trader.
At Hanley & Co. Accountants, this month’s blog looks at the advantages of becoming a sole trader. For information, call us in Staveley, near Kendal on 01539 821869.
Setting Up is Quick & Cheap
One of the main reasons people set up a sole trader business structure is how easy it is to set up and start trading. Registering as a sole trader with HMRC is free and can be done online.
Start-up costs are also generally low. You won’t need to register with Companies House and you don’t require a separate bank account.
You Have Complete Control Over Your Business
As a sole trader, you have complete control over your whole business. You make all decisions, allowing for flexibility to make changes without needing to consult shareholders or partners.
With this, you can shape your business according to your vision and values, so you are directly responsible for its success.
You Control Your Profits
Sole traders can keep all business profits after tax, as they don’t have to be divvied out amongst shareholders. Unlike a limited company where profits are distributed as salaries or dividends, a sole trader keeps the net income and reinvest or spend it as they see fit.
Having full access to net profits is beneficial for startups to boost finances in the early stages as the business starts to grow.
Simplified Tax & Accounting Responsibility
Sole traders benefit from a simpler tax structure. You only need to complete a self-assessment tax return once a year to report your income and expenses.
This simplicity often results in lower accountancy fees and less time spent on paperwork.
Sole Trader Accounting with Hanley & Co. Accountants
Becoming a sole trader is a great choice for startups. At Hanley & Co. Accountants, we specialise in sole trader accounting. Our team provides unlimited support and advice, so you can focus on growing your business.
If you require a sole trader accountant, contact Hanley & Co. Accountants in Staveley, near Kendal. Serving across Cumbria, call us on 01539 821869. Alternatively, send us a message via our contact form and we will be in touch.
