 establishing a legal framework for your football coaching business. Now I've done a number of videos on this on this topic and what I'm going to do is I want to break it down in very simple terms today right so I've got a sheet right in front of me and this is the PDF that is attached to the lesson right if you have a look this PDF was was created and sent to us from Valor Accounting Services the accountant that runs that is Andrew Casale which is my accountant and he's also a close friend of mine we've done numerous podcasts together and he has kindly sent me through this PDF to help we help you guys to understand the differences between sole trader and limited company when you're choosing the right business structure for your business right so in front there are nine differences right so there are nine steps to different to working out what is better whether going down the sole trader route or whether going down the limited company now when you're starting and typically what most football coaches do when they start in their business they will go down the sole trader route okay now the sole trader is very simple all you have to do is you fill out a self-assessment every year or quarterly depending how how you do it and you pay your taxes right so you just have to make sure that you're very organized keep making sure that you're you're saving money aside for when you're when you have to pay your taxes and that you're keeping all receipts for it now private limited company is different to a sole trader and something I always recommend with coaches is that once their business starts to grow and you have a steady amount of customers going down the limited company route is going to be very beneficial to you as it is going to help you in terms of rowing and skating so in front of me I've got nine different things to differentiate a sole trader from a limited company and I'm going to try and go into a little bit of detail in this but again if you have any questions for me write them in the community and I'll get back to you as soon as I can right so the first one is commercial reasons right so some larger suppliers such as those providing pitches or equipment may prefer working with limited companies due to perceived establishment right so if you partner with a big brand such as Puma and Knight or an indoor facility or just a facility such as like power legal goals if you partner with these type of companies right most likely that they will do business with you if you are set up as a private limited company okay private limited company for them means that you are serious you're more established and also you've gone and done everything that you need to do in order to set up your business legally sole trader is very hard for some of these companies to actually do business with you I know a lot of coaches that you know they have partnerships with Puma or with Nike and they get their merchandise from them or training gear but these bigger companies will only really do business if you are set up as a private limited company okay because again it means that it's more it's more of a secure reason for them to do business if you are a sole trader there's more risks involved as you're self-employed essentially and you are the owner of a limited company of a business right you're just working for yourself okay now the second one is limited liability so opt-in for a private limited company provides protection for private assets in case of business failure and so again when you set up a private limited company you become the director of that company and essentially you separate yourself from the business so any financial failures or business failures that the business may come across in the future you as a director you have a responsibility for it but you are not liable for those damages or those failures okay so I'll give you a simple example when if you are the director of a limited company and you decide to take out a business loan right that company is essentially in liable for the the repayments of that loan not the director now if you are a sole trader it's different because you are the business so you are liable for any business failures which may occur okay private limited company you are the director of your company so you are two separate things sole trader everything's in one and you become liable for any business failures and loan repayments etc right the third one administration and cost so the sole trader route can be cost effective and simpler method to establish your coach in business a private limited company will evolve a high administrative and cost burden okay again good point so as a sole trader it's very simple any income you get for doing business you just fill out a self-assessment form very easy to do and you pay your taxes as a private limited company you have to file your your taxes and pay corporation tax and sometimes that incurs more more costs and that incurs you may be having to pay an accountant to do that all right so sole trader can be more cost effective because all you have to do is pretty much fill out a self-assessment not much administration and cost whereas a private limited company you are in charge of those business of the business taxes and sometimes it will require you to to get an accountant to file your taxes for you so that that could that might involve an extra administration more admin time and also more cost by the fourth one funding and lending so while it's not impossible for sole traders to secure funding or lending limited companies generally have more options so if you go to your bank and you are a sole trader and you want to get out alone for the business there's more chance of you acquiring a loan if you are in private limited company rather than sole trader and that is because banks want to do business with businesses okay they will see you as self-employed they'll see you as just a sole trader so they want to do business with companies that are legitimately set up okay so again more chance it's not impossible to get a business loan if you're a sole trader but there's more chance if you are in private limited company right the fifth one income tax versus corporation tax as a sole trader you will be paying income tax national insurance and so a self-assessment will need will need to be submitted right as a limited company you will pay in corporation tax if it and if employing other coaches or staff you will be paying employees so as a sole trader you will be paying income tax and national insurance with your self-assessment form okay so as I said you any income that you get as a sole trader you pay taxes on that as a private limited company you will be paying corporation tax and not income tax unless you put yourself on the payroll and you're paying yourself paying yourself or above the legal threshold right sole traders pay income tax private limited companies pay corporation tax okay so as a director if you won't be paying income tax unless you're paying yourself a salary as a sole trader you will be paying income tax regardless because that is the income that is coming in and number six stay small or grow if you want to stay small and local there is nothing wrong with being a sole trader changing to limit company can be done careful planning is a must all right so sole trader if you're if you're just working with a limited amount of clients then it's great to stay as as a sole trader but as you start to grow in it and expand there are business benefits of setting up as a private limited company and number seven multiple partners so if starting the business with multiple partners a limited company can be a lot more straightforward when considering salaries and profit distributions so if you want to bring on a business partner having a private limited company is a lot easier to do rather than if you are the sole trader right because a private limited company is a separate entity from the director so you can bring on business partners to join you in that company and then profits are distributed and as you guys agree right but as a sole trader you can't really bring on a business partner because you are the business okay but you can do if you are a private limited company right number eight employment you cannot employ yourself as a sole trader you can if your business is a limited company so again this comes down to if you want to go on payroll with your private limited company so that your your company is paying you a salary every month then you can do that and then you as the director of that company you can decide what that company pays you each month depending on how much income that the company is making etc as a sole trader you cannot employ yourself okay because you're a sole trader as a limited company you can employ yourself and you can write off any salaries that you might have against your profits right number nine selling your coaching business there can be there can be more flexibility when selling a limited company for example you can share some of your you can sell some of your shares to someone else or you can sell the company to another coach or or another business right so as a sole trader you can do this as well but it's a lot harder because people see it more as a risk when it comes to the limited company right but there's more it's not risk-free but it's a lot safer for people because they can see all the details of the company right so when you file your taxes every year that goes on to a system which becomes open to the public so anyone looking to purchase your company can see how much revenue your company is making and how much tax they are paying okay so again this becomes a lot more secure if you have any investors looking to buy into your business now as a sole trader it's a little bit more difficult to do because you are the business right you can't sell yourself