Limited Company or Sole Trader?

There are advantages and disadvantages with starting a business either as a limited company or a sole trader. Operating as a sole trader gives the advantage of requiring little in terms of administration. You must register as being self-employed with the Inland Revenue within the first three months of trading and you will pay Self Assessment Tax as well as national insurance. As a sole trader you are personally responsible for any monies owed to government or creditors and hence your personal assets including your home can be at risk.