Switching from sole trader to limited company

There are a number of reasons why someone might start freelancing as a sole trader; firstly their can be a tax advantage if you believe you will make a loss in your first year.

Switching from sole trader to limited company

There are a number of reasons why someone might start freelancing as a sole trader; firstly their can be a tax advantage if you believe you will make a loss in your first year. Secondly you may just be dipping your tow in the freelance world to see if you like it. However when you realise it is for you, the limited company route has a large number of tax advantages and the benefit of protecting your personal belongings – if a limited company is sued, your personal belongings – house etc. – are not at risk of being taken, the same is not true for sole traders.

So what is the process for switching:

You can move from freelancing as a sole trader to your own limited company in no time at all. All you need do is:

  1. Fill out the Join The 123 Way form (if you are not already a client).
  2. Inform your clients you will be trading through your own limited company from now on.
  3. We will form your limited company for you
  4. We will help you open a limited company bank account
  5. We will prepare final sole trader accounts and incorporation calculations moving your business from being a sole trader into your new limited company.
  6. Now you can freelance through your limited company and we will be with you every step of the way with unlimited support.

It really is very quick and easy!

If you have any further questions, please call us on 0845 834 0269 or email info@cmjaccountancy.co.uk for more details.