Liabilility for co vs sole trader

  • Thread starter Tea & Coffee
  • Start date
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Tea & Coffee

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Hi,

I have read (think it was on here) that it is not always the best idea to register as a ltd co as then you have to file tax returns etc and get into the whole messy VAt business.

But then I was wondering- if you start out as a sole trader- are you then personally liable for all debts, or personally liable if someone sues you (e.g personal injury)

Are you VAT exempt as a sole trader as well?

thanks
 
A sole trader must also file tax returns & register for VAT if sales are above a certain level. Sole traders and companies are subject to exactly the same VAT rules.

A director of a limited company can be held personally liable for company debts if they are negligent.
 
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