Thursday, 6 December 2012

if (Self-employed = good) ? Sole Trader First : Private Ltd Company;

Being self-employed is a rollercoaster.

I strapped into the fairground ride as a sole trader about 7 months ago during which time it feels like I nearly spilled out of my seat a couple of times.  There have been times during a quiet period that I wasn't sure if I was being dragged up the slope ready for the next wild ride or genuinely stuck at low-point.

When I first went self-employed I looked into the options (e.g. Ltd. LLP) and decided on sole-trading because there is little reporting and easy accounting.  One of the biggest drawbacks for me was that I wouldn't own a company, be a Director or have a cool name to trade under - pure ego strokes.

I think I made the right choice.  It's given me time to get used to being self-employed and build up some contacts and a much better idea of what I want to do, what customers want me to do and what I should charge them.  It has allowed me a bit of latitude to choose the particular fairground ride I want to spend my time riding.  Actually I'm not sure it's a choice.  I've done some very exciting things this year that wouldn't be possible as 'a worker-bee employee' and have worked on some great projects with some amazing people.

Being self-employed has taught me so much about my value, my earning potential and most importantly my talents.  The little bit of nowse I've developed means I feel more confident about being self-employed and am prepared to stick it out during the slow-lows waiting for the inevitable heart-shaking, nerve-jangling, adrenaline pumping corkscrews.  It's a scary rollcoaster but at least they are always in amusement parks.

I'm even thinking about stepping up and 'incorporating' a company - despite the forms and responsibilities.  I think I can make a go of this and my earnings may be enough to justify it from a tax point of view.  I have also thought up a really sexy-cool name for this possible company which in itself is reason enough to form up.  In reality I think that's quite a big reason to create a Ltd. Company.  A really popular post I found has good convo about Ltd vs Sole Trader.  In reality I think it's more about ego than anything else.  It's be cool to be a Director.  I might even get headed note paper and an accountant.