How to start a construction company

Sole trader

Easy to set up, simple tax submissions, you keep all the profits

You’re personally liable, higher tax

Solo tradespeople with low-risk jobs and turnover under £50k a year

Limited company

You’re not personally liable, lower tax, tax savings

More admin, higher setup costs

Firms with employees, subcontractors, or turnover over £50k, and high-risk projects

Limited Liability Partnership (LLP)

You’re not personally liable, flexible profit shares

Complex to set up, ongoing records

Multi-partner specialist firms