Sole traders and partnerships
A sole trader is a self-employed person who is the exclusive owner of their business. They are entitled to keep all profits after tax but they are also liable for all losses.
A limited company, on the other hand, is legally separate from the people who run it. It has separate finances and you can keep any profits it makes after paying tax.
The timing of cash is dependent on the type of funding but on average funds can be released within a week, if not sooner.
Running your business as a private limited company means:
- It is legally separate from the people who run it.
- It has separate finances from your personal ones.
- You can keep any profits it makes after paying tax.
To set up a private limited company you need to register with Companies House. This is known as ‘incorporation’.
Find out what you'll need to do here.
We can help with both short-term and long-term funding, anything from a month to a facility that can run for years and years.