Rick Blyth
1 min readApr 16, 2023

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Hey, sorry for the delay in responding.

I'm not a tax expert/accountant but for me in the UK I set up a LTD company and had all the apps running through that.

Off the top of my head, here are the pros and cons of setting up a LLC or Limited company:

Benefits

- Limited liability in the unlikely event someone sues or my apps had caused someone loss of income

- Easier to sell and exit via an asset sale

- Easier to manage accounting and taxes by keeping personal finances separate from business finances

- Simplified tax management by paying corporation tax on business profits and personal income tax on salary

Drawbacks

- Increased admin responsibilities such as filing annual accounts and VAT returns.

- Slightly higher start-up costs compared to operating as a sole trader or partnership

- LTD company profits are subject to corporation tax, which can be higher than income tax for sole traders or partnerships.

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Rick Blyth
Rick Blyth

Written by Rick Blyth

I help software developers utilise their coding skills to create apps that bring them freedom through passive income. Find out more at https://rickblyth.com

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