Moving from sole-trader to a limited company

What to do if you change from a sole-trader to a limited company when you use Sage Sole Trader.

Why you need a new Sage Accounting business

Sole-traders and limited companies are separate legal business types.

Sage Sole Trader is for sole traders using Making Tax Digital (MTD) for Income Tax.

When you become a limited company, you need to set up a new Sage Accounting business.

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What happens to your existing business

Your existing Sage Sole Trader business stays available for your sole-trader records.

Don't reuse it for your limited company processing.

This keeps your personal and company records separate and accurate.

You create a new Sage Accounting business from your account menu.

1. Open the Business name dropdown.
2. Select Add a business.
3. Follow the sign-up steps to set up your limited company.

Choose the correct business type during sign-up. 

Don't move or reuse sole-trader transactions for your limited company.

Your accountant can advise how to handle any final sole-trader reporting and company opening balances.