Before/After Content Comparison

Before

Should You Register as a Limited Company?

Updated: 12 March 2024 | 8 min read

A limited company is a separate legal entity from its owners. When you register as a limited company, you create a business that has its own legal identity. This means the company can own property, enter contracts, and is responsible for its own debts.

Advantages of a Limited Company

Limited liability protection means your personal assets are protected. The company's finances are separate from your own. You may pay less tax depending on your circumstances. It can appear more professional to clients and suppliers.

Disadvantages

There's more paperwork and admin. You'll need to file accounts and confirmation statements. It costs money to set up and run. You have legal responsibilities as a director.

Alternative: Sole Trader

You might prefer to register as a sole trader instead. This is simpler and cheaper to set up. You report your income through Self Assessment tax returns.

Issues:

No decision framework
No clear next action
Vague internal linking
Doesn't address user anxiety

After

Should You Register as a Limited Company?

Updated: 12 March 2024 | 10 min read

If you'll earn over £30,000/year and want to protect your personal assets, a limited company often makes sense. If you're just starting or unsure about income, sole trader is usually simpler.

Quick Decision Framework

You probably need a limited company if:
✓ Annual profit likely over £30,000
✓ Taking on business debt or leases
✓ Working in high-risk industries
✓ Want to take investment

Start as sole trader if:
✓ Just testing an idea
✓ Profit under £20,000/year
✓ Want minimal paperwork
✓ Can switch to limited later (you can always change)

What Limited Companies Actually Protect

Limited liability means the company's debts are separate from your personal finances. If the company fails, creditors can't come after your house or savings (with exceptions like personal guarantees or fraud).

The Trade-off: Protection vs Simplicity

Protection costs: £12/year Companies House fee, accountant fees (£500-2000/year), annual accounts filing, confirmation statements. Most founders underestimate the admin time.

→ See full cost breakdown: What running a limited company actually costs

What to Do Next

Compare sole trader vs limited company in detail →
Tax implications, legal differences, when to switch. 7 min read.

Register your company (takes 24 hours) →
Step-by-step company registration. What you need, common mistakes, what happens next.

First 30 days as a limited company →
Banking, accounting software, legal compliance checklist.

Improvements:

Decision framework up front
Strategic internal links
Explicit next steps
Addresses user anxiety
Clear action paths