DWI CPD Test: Ltd Co Vs Sole Trader What You Need To Know For This Tax Year

1. What is one main reason dentists consider setting up a limited company?

To decorate their clinic

To avoid paying rent

To reduce personal tax liability

To hire more staff

2. Which of the following is a benefit of being a sole trader?

Complex paperwork

Easy setup and management

Higher tax rates

Mandatory shareholders

3. Who has limited liability in a limited company?

Suppliers

Patients

Shareholders

Sole traders

4. Limited companies must comply with which of the following?

Hairdressing licenses

House of Commons approval

Companies House regulations

Personal trainer exams

5. What kind of legal structure is most flexible for personal control?

Limited company

Sole trader

Non-profit organization

Corporation