Sole Trader or Limited Company? Members  

Most illustrators start their working life as self-employed, also known as a sole trader. They file a personal tax return each year with HMRC which gives details of their business income and allowable expenses, as well as other relevant details. In legal terms, the business is an extension of themselves. Many illustrators stay as self-employed throughout their working life. Some, however, decide to form a limited company and transfer their sole trader business into that company, a process known as incorporation. They become the director of the company and are probably the sole owner too. To help you decide which may be suitable for you, we've laid out a number of points to consider. The default position is trading as a sole trader and not as a limited company. You should think carefully before you decide to transfer your sole trader business into a limited company, it could prove an expensive mistake. The law surrounding sole traders and limited companies changes regularly and you should take professional advice before making any ch