One of the key questions is which way you’ll pay less tax and national insurance - by being self-employed or as a limited company.

There are several ways you can set up the actual company. Here are the pros and cons of each - with links to more detailed information.

If you set up your business as a limited company, it means it’s a separate legal entity - which has some pros and cons.

Being a sole trader is the easiest way to start a business - there are fewer reporting requirements than if you set up as a limited company, for instance (although you do have to register as self employed at the HMRC). And accounting is much easier (and hence bills for accountants are lower).