I have a client who is the sole director and sole shareholder of a small engineering company with one premises. He has just taken on another property (both leased) as his business is expanding. He has asked me whether to set up a new company or sole tradership for running the extra business that will be going through the new premises. (It is still the same business and engineering trade as the first one). The reason he has mooted this idea is so he does not loose out on the small business rates relief and indeed still get this in the new company as this would also be a small business. There is no question of vat avoidance as both will be vat registered. I thought of the potential problems regarding associated companies and corporation tax but I do not think this applies any longer? ... for now anyway! I could be wrong? My question is apart from the fact that he will have double the administration costs (accountancy etc) and also the whole idea may have questionable ethics, can anyone think of the pros and cons of his idea? Any help is appreciated.