Should You Go Limited? Why Creatives Are Turning Their Side Hustles Into Limited Companies

If you’re a singer, performer, artist, or online creator, chances are you’re making money from your craft. Whether it’s from gigs, merch, sponsorships, or commissions, at some point, you’ll hit that moment where you think—should I stay a sole trader, or is it time to go Limited?

It sounds like a big, serious move (and, yeah, there’s a little paperwork), but switching to a Limited Company can actually be a game-changer for your finances and career. Here’s why:

1. Pay Less Tax, Keep More Cash

When you’re a sole trader, everything you earn gets taxed as personal income. That can mean a hefty 20–45% tax bill depending on how much you make. A Limited Company pays Corporation Tax (19% or 25%), and you can pay yourself a mix of salary and dividends, which often means less tax and more money in your pocket.

2. No More “What If?” Stress

Freelance life is unpredictable. One month, you’re swimming in paid work, and the next, it’s tumbleweeds. The scary bit? As a sole trader, you and your business are legally the same thing, so if something goes wrong—like a legal issue or unexpected debt—your personal savings, car, or even your house could be at risk. A Limited Company protects you by keeping your personal and business finances separate.

3. Big Brands Take You More Seriously

Want to work with major clients, record labels, or big-name brands? Many of them prefer dealing with registered companies over sole traders. Having "Ltd" after your name gives you that extra level of professionalism and credibility. If you're looking to scale up, score bigger contracts, or collab with serious players in your industry, being a Limited Company can help open doors.

4. More Control Over Your Income

The feast-or-famine cycle of freelance work is real. One perk of running a Limited Company? You get more control over how and when you take your income. You can leave money in the business, take dividends at a lower tax rate, and smooth out your earnings over the year instead of dealing with unpredictable paydays.

5. More Expenses, More Savings

Sure, both sole traders and companies can claim business expenses, but Limited Companies get more flexibility in how they structure costs. Things like studio time, equipment, travel, marketing, website costs, even part of your rent if you work from home—all of these can be tax-deductible, meaning you keep more of what you earn.

6. Thinking Long-Term? This Sets You Up

Maybe right now, you’re just focused on getting gigs, commissions, or brand deals. But what if, one day, you want to launch your own agency, sell your own products, or expand your creative business? A Limited Company gives you more room to grow, making it easier to get funding, business loans, or even investors down the line.

So, Is It for You?

Going Limited isn’t for everyone. There’s a bit more admin, and you’ll need to file company accounts. But if you’re making over £30K a year, the tax savings and protections can make a huge difference.

At the end of the day, it’s about what works best for YOU and your creative career. If you’re not sure, do some research, ask around, or chat with someone who gets the freelancer life. No pressure, just options.

If you're ever in need of help with setting up a limited company, sorting out your bookkeeping, accounting and tax submissions or would like some personal financial coaching, drop us a line by clicking on the 'Contact Us' button at the top of the page and we'll be happy to help.

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