A client of mine runs his business as a sole trader even though it is very successful. He maintains his status as a sole trader is so that no information is in the public domain. If he ran his business as a limited company, he would have to file accounts with Companies House and thereby out this information in the public domain where his competition could obtain it.
Another example of using a limited company as a vehicle to run your business would be disposal of that business.
To dispose of a limited company is far easier than if the business was run as a sole trader because a limited company is a separate entity from the owners and the directors who run the business.
A third example of the benefits of using a limited company is when running a business that has major exposure to risk. With a limited company, the only risk that the owners of a business have is the amount they put in as share capital. If you run your business as a sole trader, the risk is unlimited limit, and therefore all your personal assets could be at jeopardy.
If you wish to discuss the best structure for running your business, contact me Green and Peter on 020 8446 8100.