- Simple – easy to administer
- Flexible – easy to manage
- “Cheap” – simplest form of business, with minimum regulation and administration
- Least impressive “status” in business community
- Not Tax/NIC efficient
- No protection from liability
*Self-employment includes partnerships which are really, effectively, treated as a group of self-employed people working together.
- Better “status” in business community
- Tax/NIC efficient
- Limitation of liability
- Better in the long term for financial and tax planning
- Easier to involve other people and investors
- More complicated administration
- More expensive to run
- More constraints on administration
- More legislation to worry about
- Less flexible cash movement
There is a compromise called a Limited Liability Partnership (LLP) which may suit some situations.
Companies House offer guidance on the use of sensitive words and expressions when dealing with incorporation and names.