[carbonesc]

I would advise that before people rush to register a Limited company they should consider operating as a sole trader. A sole trader can open a bank account, employ people, rent an office, register trademarks etc.

Also search thoroughly for your proposed company name to check for existing businesses with similiar names or trademarks. And you will probably want a domain name to match.

[teamonkey]

I would think the opposite. As a sole trader you're personally liable for the company. Above a fairly low threshold for income you have to be VAT registered as a sole trader anyway, which is the biggest headache. If you already get an accountant to do your books I see no reason at all to be a sole trader.

[carbonesc]

You only have to register for VAT if your turnover reaches about 70,000 UKP [1]. I guess there are many people reading HN who will be running a business that will not immediately reach this level. Incorporating a limited company is not the only way for them to set up a business, which was the impression given by the article:

"If you're trying to create a business, rather than just create a legal outlet for your freelancing, you will need a Limited Company."

I am just suggesting people weigh the alternatives of limited company vs sole trader. The minimum viable form of business is the sole trader. It is possible to convert from sole-trader to limited company at a later stage. Certainly consult an accountant and consider the cost and tax implications of both approaches.

When there are going to be multiple owners of the business from the start I would agree that a limited company gives clarity to your relationship and is probably better for this reason.

[1] http://www.hmrc.gov.uk/vat/forms-rates/rates/rates-threshold...

[AdamGibbins]

Why? Aren't they very similar, just an Ltd has slightly more complicated tax paperwork and provides liability protection? Combined with the obvious benefit of having multiple people as directors.

[Validus]

I simply use: http://start.biz/multi_search.php to perform company name, domain name and business name search within the UK.

[peteretep]

That's a terrible idea. If you're living above the poverty line, the tax breaks for being a limited company are huge, and will pay for the overheads of accountants very quickly.

[carbonesc]

I agree, the tax position is the calculation that decides the appropriate form of your business. I'm thinking of start-up people living on noodles rather than those who already have a good income.