a sole trader or as a limited company

Should I start my business as a sole trader or as a limited company?

Didn't find your answer?

 I am looking to begin a business in the UK, and I want to get some information before I start my business , where I want to be a trader on amazon fba.

Should I start my business as a sole trader or as a limited company? I guess that my earnings will be less than 12,000 pounds/year.

Replies (18)

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By Paul Crowley
07th Oct 2022 16:39

Depends upon whether you have other income
Also as you specify UK, maybe there are other issues to resolve

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Replying to Paul Crowley:
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By ADNAN ALAHHMAD
07th Oct 2022 17:45

I live and work in Saudi Arabia so I dont hava any anothwe income from UK

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Replying to ADNAN ALAHHMAD:
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By Paul Crowley
07th Oct 2022 18:04

How can you be self employed in UK?
And the company, should you get one, would be controlled abroad.
Zero chance of getting a UK bank account. (from a proper UK bank)

So the decision is based how your country looks at these things

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By zebaa
07th Oct 2022 16:45

Depends if you want limited liability (Ltd Co) or simpler low cost regulation (self employed) as a basis for starters. A lot of accountants will give a free initial phone chat for pointers on the way to go.

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RLI
By lionofludesch
07th Oct 2022 16:51

Not really giving us much to go on there, fella.

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By bettybobbymeggie
07th Oct 2022 17:13

I vote LLP

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By Tax Dragon
07th Oct 2022 17:19

Where do you live?

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Replying to Tax Dragon:
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By ADNAN ALAHHMAD
07th Oct 2022 17:44

I live in Saudi Arabia

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Replying to ADNAN ALAHHMAD:
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By Tax Dragon
07th Oct 2022 17:47

So in what sense will your business be in the UK?

Go back to the drawing board, and consult an accountant.

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Replying to Tax Dragon:
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By ADNAN ALAHHMAD
07th Oct 2022 17:59

I want to sale on Amazon FBA - UK
I will consult an accountant but I just want to know the best field to start with.

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Replying to ADNAN ALAHHMAD:
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By Leywood
07th Oct 2022 18:45

Best field.

Two Accountants. One in your own jurisdiction and one in UK.

I didn’t think it was worth it for a piffling £12k. Even less so now.

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Replying to ADNAN ALAHHMAD:
RLI
By lionofludesch
07th Oct 2022 17:58

ADNAN ALAHHMAD wrote:

I live in Saudi Arabia

Whoa !!

This is far too complicated for an internet forum.

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Replying to ADNAN ALAHHMAD:
RLI
By lionofludesch
07th Oct 2022 17:58

ADNAN ALAHHMAD wrote:

I live in Saudi Arabia

Whoa !!

This is far too complicated for an internet forum.

Thanks (1)
VAT
By Jason Croke
08th Oct 2022 12:14

You are going to need a UK VAT number if trading on Amazon UK. But whether to register for VAT as a sole trader or a Ltd or LLP remains the first issue to deal with.

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By Truthsayer
08th Oct 2022 13:49

'Should I start my business as a sole trader or as a limited company?'

Yes.

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By Hugo Fair
08th Oct 2022 20:03

"I am looking to begin a business in the UK, and I want to get some information before I start my business"

So have you decided what you're going to sell / from where to source the goods / to whom you're going to sell / your pricing model / your cashflow funding / and so on?

If so, then you should be putting together a business plan ... on the basis of which an appointed accountant could provide an answer to your question here (along with some other equally important pointers regarding how to run the business to your benefit).

If not, then that's where you need to start ... before worrying about which vehicle to use.

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By Tax Dragon
09th Oct 2022 09:37

The reason you have received responses that might appear to contradict is simple: different taxes work in different ways. For VAT (and duties), your supply might be where your customer is; for income tax (and most other taxes), your business is (probably) where you are.

But don't worry, we've scrapped the Office of Tax Simplification, so I'm sure the rules will only get easier in future.

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By Leywood
10th Oct 2022 12:33

Is it really worth it?

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