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A quick question
Unique-look
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Unique-look
Messages count : 1
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22 January 2008
Hi I just wanted to ask if you guys as freelancers work as a sole trader or limited company? What are the pros and cons of each? Would you say a limited company gives a more professional front to your business/service or just causes extra hassle? Any advice or comments on which route you think is best would be great.
Thanks,
Sam
Thanks,
Sam
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Melinda.Jones
Messages count : 7Likes count : 0Registration : 27 June 2008To start off I would definitely recommend trading as a sole trader. LTD companies cost money to set up and you really need to know what you are doing to run one.
When you have a good customer base and earning decent money then look at going LTD, I suspect 90% of Freelancers are sole traders. -
urbanbindi
Messages count : 7Likes count : 0Registration : 22 July 2008As a sole trader you will be looked down upon by bigger commercial clients as sole traders do not really work on their books.
I started as a LTD company, and its not hard work at all. Its very simple and not that expensive as its made out to be.
You just need to form your company, it costs as little as £30 to get started, and with that you'll have your business name, and your official documents.
You need to think about the future and what kind of business you will want to bring in. If you want to take it seriously, you should go for the company formation route and becoming trading as a Limited company. The big clients will only approach you if you're company is registered ans is liable itself.
When an individual is liable (in the case of a sole trader) big companies see it as a vulnrability and non professional.
I set up my business with £300 and that got me an upgraded processor for my pc and a super fast graphics card and a 22inch wide screen monitor. -
MrMackem
Messages count : 4Likes count : 0Registration : 3 August 2008urbanbindi, post: 9023 a écrit : As a sole trader you will be looked down upon by bigger commercial clients as sole traders do not really work on their books.
Thats pretty much balls to be honest.
Speaking as a senior designer for a a large design agency with 'bigger commercial clients' and also as a sole trading freelancing graphic designer, thats twaddle.
Bigger commercial clients may look down on freelancers who set up as Limited Companies in a way to look bigger than they are.
If you employ staff - thats the time to give Companies House a ring - if not stick with being a sole trading freelancer.