If you’ve been operating as a sole trader and you’re just starting to consider the move to a limited company, you’ll be interested in the costs of making the switch.
First of all, it’s worth us saying that you should take advice from your accountant before taking the plunge and going from sole trader to limited company. There are all sorts of reasons for and against making that sort of switch, but speak to a professional before deciding for yourself.
How much does it cost to set up a limited company?
It costs £12 to set up a limited company with Companies House online. If you want to fill in a paper application, this will cost £40. And if you want the company formed the same day (as opposed to the few days it might ordinarily take) that would cost £100.
Other costs associated with setting up a limited company
Buying equipment, getting an office and a whole host of other things are expenses you’ll probably already have considered. But you may also incur costs for using a third party address for your company if you don’t have an office.
Speak to your accountant before going ahead and make sure you have a complete list of the expenses to expect while getting up and running.
