Compare UK Business Structures

Limited company, sole trader, partnership or LLP? Compare the key differences with real numbers for the 2026-27 tax year.

Quick Comparison Table

This table compares the four main UK business structures across eight key dimensions. All figures are for England & Wales, 2026-27 tax year, standard rate taxpayer baseline.

Dimension Limited Company Sole Trader LLP Partnership
Setup Cost £12 online1 £0 (just register for Self Assessment)2 £100 online3 £0 (informal agreement)4
Annual Admin Accounts + confirmation statement to Companies House, Corporation Tax return5 Self Assessment tax return only6 Accounts + confirmation statement, partnership tax return7 Partnership tax return8
Tax on Profits 19% Corporation Tax, then dividend tax when extracted9 Income Tax (20-45%) + Class 2 & 4 NI10 Income Tax + Class 2 & 4 NI per member11 Income Tax + Class 2 & 4 NI per partner12
Personal Liability Limited to shares invested13 Unlimited personal liability14 Limited to investment15 Unlimited joint liability16

Note: This is educational content comparing factual differences. Consult an accountant or solicitor for advice specific to your circumstances.

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