Checklist: Key differences between sole traders and companies
This checklist will guide you through some of the key differences between starting and operating as a sole trader or a company. It covers points that people commonly misunderstand, which can affect how you run your business.
This checklist will be most helpful if you’re looking to change between a sole trader and a company business structure, or if you’re a company director looking to refresh your knowledge on your legal obligations.
To use the checklist, read the questions below. If you’re aware of and understand the information, you can tick and move to the next question. If not, click the question link or visit the websites at the bottom of the checklist to find out more. You can also print out this checklist and take it with you.
The checkboxes below can be ticked as you understand and move through each question.
You can also print out the checklist.
Seek professional advice from a tax professional or business adviser when choosing or changing your business structure, or becoming a company director. They can help you make the right decision based on your individual circumstances.