Starting a Business in the UK
Deciding to start a business is an exciting step – and choosing the right legal structure is one of the first key decisions you’ll face. In the UK, the three most common options are: sole trader, limited company, or partnership.
The majority of small businesses start as sole traders (approx. 3.5 million in 2019), making up 60% of all small businesses. The second most popular option is the limited company, with over 1.9 million active companies.
Sole Trader – Simple and Flexible
A sole trader is a self-employed individual who owns and runs their business. They can still have employees but bear full personal responsibility for all aspects of the business.
Benefits:
✔ Easy to register with HMRC
✔ Fewer admin requirements
✔ Greater privacy – no public register
✔ One annual Self Assessment tax return
✔ Making Tax Digital System from April 2026
Considerations:
✘ Unlimited liability – your personal assets are at risk
✘ Harder to access funding or investment
✘ Higher profits may fall into higher personal tax bands
How EVLAteam can help:
Self-employed registration with HMRC
Complete Self Assessment Tax Return service
Ongoing bookkeeping and accounting tailored to sole traders
Fixed-fee support with no hidden charges
Friendly advice whenever you need it
- Preparation for the nem Making Tax Digital System
Limited Company – Professional and Tax-Efficient
A limited company is a separate legal entity. You can form one on your own or with others as directors and shareholders. It’s ideal for businesses looking to grow, protect their name, or reduce tax liabilities on higher profits.
Benefits:
✔ Limited liability – protects your personal assets
✔ Corporation Tax can be more tax-efficient
✔ Company name protection
✔ Professional image – especially useful when dealing with clients or partners
Considerations:
✘ More paperwork and legal responsibilities
✘ Public visibility of company and director details
✘ Higher accountancy costs due to extra compliance requirements
How EVLAteam can help:
- Full Company Formation service (with Companies House registration)
- Tailored formation packages (from basic to international)
- Registered office address in Uckfield, East Sussex
- Corporation Tax and VAT registration
- Company payroll setup and ongoing support
- Annual Accounts, Confirmation Statement, and Corporation Tax Return
- Full accountancy service for limited companies
Unsure Which Structure Is Right for You?
At EVLAteam, we offer free consultations to help you decide the best setup for your business goals. Whether you’re launching as a sole trader or forming a limited company, we’ll guide you every step of the way.
Ready to get started?
Contact our expert team for advice or a custom quote tailored to your new venture.