Alan Pink looks at some practical issues when considering the cessation of a company and continuing business as a sole trader or partnership.
For many businesspeople, it is almost an article of faith that if you have a business, you have a limited company. However, the better-informed entrepreneurs are aware that this is just one of a number of choices of business vehicle, including sole tradership, unincorporated partnership, and limited liability partnership (LLP).
There are times when the disadvantages of trading through a company make it preferable to consider the more straightforward sole trader or partnership structure. There are many reasons, depending on the circumstances, why it might be a good idea to disincorporate, including the following:
- Running a company involves much greater formality and, generally speaking, greater expense.
