Legal entities
There are several legal entities that you can choose to run your business under, each having their own advantages and disadvantages. The following are brief descriptions of what they are and who they may be more suitable to.
Sole trader
The most simple of legal business entities, being a sole trader means less paperwork and less hassle, with the advantage of providing you with more time to invest in the work that makes you money. As a sole trader, your only responsibilities regarding tax are to register with HMRC within three months of starting to trade and to complete a tax return each year.
As a sole trader, you pay your tax at the end of each year, unlike working as an employee where you pay tax each time you receive payment from ...
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