Choosing Between a Sole Trader or Limited Company for UK Security Work

When starting out as a self-employed security professional, one of the first decisions you’ll face is how to structure your business.

Most people either register as a sole trader or form a limited company, but which is right for you?

Sole Trader: Simple and Flexible

Most freelance security workers start out as sole traders.

It’s the easiest way to get going and perfectly fine for small security operations.

Pros

✅ Quick to register with HMRC, no Companies House paperwork
✅ You keep all your profits after tax
✅ Easy accounting and fewer admin costs
✅ Works well if you mainly work for agencies, sub-contracted or a few regular clients

Cons

Setting up a limited company can make sense once you start working with multiple clients, subcontractors, or taking on bigger contracts.

Pros

✅ Limited liability — your personal assets are protected if something goes wrong
✅ Can look more professional to clients or venues
✅ Possible tax advantages once your earnings grow
✅ Easier to build a small security team under one company name

Cons

If you’re just starting out or working solo under your own name, start as a sole trader.

You can always register a limited company later once income or risk levels increase.

Sole trader: Register with HMRC for Self Assessment → Register as a Sole Trader (GOV.UK)
Limited company: Set up via Companies House or through an accountant.

Start simple. Focus on getting steady work and staying compliant with your SIA licence and insurance.

You can always upgrade your business structure later once you know what kind of contracts and clients you’re dealing with.

Visit the Self-Employed & Small Business Security Resources UK Homepage