Starting a limited company offers a legal distinction between you and the company managers or decision makers – as such, personal assets do not hang in the balance if things go south. With that said, successfully running a limited company requires much more responsibility, like preparing all kinds of paperwork each year on a timely basis, which can be both costly and time-consuming. With a limited company, you also have the flexibility of taking money out of the company account to meet your personal tax needs in the form of dividends, as a salary, or even both in certain instances. However, you must also pay Corporation Tax on your profits. With self-employment, you only have to pay income tax on the collective earnings of the business.