Check whether sole trader or limited company may be the better fit
Answer 5 quick questions about your plans and get a plain-English result - sole trader or limited company - with the reasoning behind it.
What you get
- A plain-English result with key reasons
- Step-by-step setup guidance for your structure
- Key deadlines for your first year
- The key tax and admin differences between both structures
Based on HMRC and Companies House guidance. General information only - not professional advice.
Who this is for
- Starting a side hustle, freelance project, or small business for the first time
- Unsure whether to register as a sole trader or form a limited company
- Earning income outside employment and wondering which structure applies
- Already trading informally and wanting to understand your options
What it considers
- Whether you plan to work alone or with co-owners
- Your expected income level and whether liability matters
- Whether you sell physical products
- Whether you are already trading
- How much ongoing admin you are prepared to manage
What it does not check
- Your full tax position or personal financial circumstances
- Whether switching structures makes sense mid-year
- IR35, VAT, CIS, or payroll positions
- Overseas income or multi-entity situations
How your result works
The checker weighs 5 common factors that distinguish sole trader from limited company paths. You get a plain-English result - sole trader, limited company, or review suggested - with the key reasons. If your situation has mixed signals, the result explains the trade-offs and what to check next. You can save your full result by entering your email.
Common questions
Does this register me with HMRC or Companies House?
No. This is an information checker only. It helps you understand what may apply based on your answers. Registration is done separately on GOV.UK.
What if I get a "review suggested" result?
It means your answers have mixed signals. The result explains the key trade-offs and points you to the next steps to consider.
Can I change my business structure later?
Yes. Many people start as sole traders and incorporate as a limited company later. The transition is manageable but has admin and tax implications worth understanding before you switch.
Do I need a professional to decide?
Not necessarily for a simple starting position. If your situation involves co-owners, meaningful liability exposure, or higher income, an accountant's input is worthwhile before you start.
Is this specific tax advice?
No. This is general guidance based on common factors. It does not assess your personal tax position or full circumstances.
Want a structured setup plan after your result?
View Business Setup RoadmapThis checker gives a general result based on your answers. It helps you understand what may apply and what to check next. It does not assess your full circumstances or provide professional advice.