When do I need a Limited Company?

It's difficult to know what the right time is to set up a Limited Company but we'll walk through when you may want to consider a Limited Company vs a sole trader or umbrella company.

By Chris Andreou
|
Last updated
February 2, 2024
Free business accounting consultation for contractors, freelancers, self employed and limited companies

Speak to an accountant

Get a free 20 minute consultation about starting your business

Limited company accounting from £75

When do I need a Limited Company? guide
When do I need a Limited Company? guide

When to set up a Limited Company

There is no clear cut time as to when you should start working through your own limited company. With other routes available—such as operating as a sole trader, or working through an umbrella company—it is always worth weighing up what is best for you and your circumstances.

With that being said, if you plan to work as an independent contractor for the foreseeable future, opening your own limited company at the early stages can maximise your opportunities for reaping the benefits of having your own company straight away.

Small business owner creating a Limited Company
Registration, tax and limited company accounting support from £75/mo

We can help you with registering a limited company, take home pay, London business address, a dedicated accountant, accounting software and all your company filing from only £75/mo.

Read more Limited Company guides