05/09/2026
Sole Trader or Limited Company — which is right for your business?
It’s a question many business owners face when starting out — and one that becomes increasingly important as profits grow.
There’s no magic profit figure that makes one option automatically better than the other.
Your decision can depend on:
💷 How much profit your business makes
📊 How much money you need to take out personally
🛡️ The level of financial or legal risk your business carries
📋 How much admin you’re prepared to take on
🚀 Your plans for growth, investors or larger clients
As a general rule, the financial case for incorporating often becomes more interesting once profits reach around £40,000–£50,000, but your individual circumstances matter far more than a simple threshold.
So, which structure could work best for you?
We’ve broken down the key differences in our latest blog — including tax, National Insurance, liability, admin costs and what happens if you decide to incorporate later.
👉 Read https://www.kernow.ltd/blog/sole-trader-vs-limited-company
And if you’re still unsure which option works best for your numbers, get in touch with Kernow Accountancy. We can help you look at the figures based on your own circumstances.
General guidance only and based on UK tax rules for 2026/27. Please seek professional advice before making decisions about your business structure.
