How are sole traders' accounts different from those of a limited company?

How are sole traders' accounts different from those of a limited company?

Introduction - Limited Company vs. Sole Trader

At some point into a business venture the answer that most of us will need is whether or not to form a limited company.
Often, the desire to incorporate (become a limited company) comes from reasons that are more ego amplified and more to do with our perception of what a business should be rather than some of the most important factors such as overhead and profit.


Is being a Sole Trader leaving business on the table?

Because businesses feel safer dealing with limited companies over sole traders, the biggest reason being a sole trader is a disadvantage would be that you are going to leave business on the table. Business is usually more stable in limited companies.
Even though you could leave some business out there being a sole trader. Being a sole trader may very well be more profitable because there's usually not as much administration needed or overhead to maintain the company.