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Sole trader or limited company. This is indeed one of the great conundrums of life as a freelance creative. To make an informed decision you really need to befriend a bean counter.

Sole trader or limited company. This is indeed one of the great conundrums of life as a freelance creative. To make an informed decision you really need to befriend a bean counter.

A bean counter (aka accountant) will be able to talk you through the relative pros and cons specific to your situation. We know it’s another expense you’d rather be without, but accountants can save you huge amounts of money in the long run.

The option that’s best for you will ultimately depend on your ambitions. Are you happy to work for yourself, by yourself? Or do you dream of building a design empire with a vast array of depreciating plant and machinery?

Some freelancer designers think they will be better off as a limited company because of favourable tax rates and limited liability. But you can be more profitable, and escape a lot of paperwork, by simply operating as a sole trader.

So sit down and actually crunch the numbers on your potential earnings at the different tax rates. You may be surprised!

Courtesy of The Pond