Once you’ve got the qualifications and certifications you want to become a personal trainer, the next step in setting up is to create your business identity. In the UK, the two most common types of business structure for personal trainers are sole trader or private limited company and you’ll need to decide which is more appropriate for your business.

Sole Trader

The simplist, easiest and most common form of business structure for personal training businesses is a sole trader. This means you trade as an individual and has all the benefits and risks of doing so. To set up, all you need do is register with you local tax-office as a sole-trader, notify Revenue and Customs advising them that you will now receive income from self employment. And that’s it, you can now start trading. There are no annual returns and accounts to file or separate tax returns, you can even get away without an accountant.

The downside is that you personally are responsible for all taxes and debts associated with the business, if you get into trouble you’ll have to pay off debtors from your personal finances and if you own a property this can be risk. Also, as there are no public accounts filed it can be difficult to get credit and attract investors should you wish to expand.

Private Limited Company

If you want to don’t want to be personally responsible for debts or liabilities incured by your business you can set up the business as its own legal entity, known as a “Private Limited Company”. The advantages of a Limited (Ltd) company structure is that company has its own legal identity the owners (known as shareholders) and directors who run it have no personal liability. If the company runs up debts or takes out loans which can not then be paid back only the assetts of the business, not the owners, can be reclaimed.

The disadvantages are that there are legalrequirements and accounts must be submitted to Companies House every year. The requirements being that the business must have a registered office which can not be  a postal address; the name must not be the same as any other UK Limited company; it must have at least one named director and at least one share in the company must be issued.

Bank accounts

Something else you’ll need to consider is a bank account. For limited companies you’ll need a dedicated business bank account but for sole-traders there’s nothing to stop you using a personal bank account rather a business account and incurring higher bank charges but ensure you keep good records and track income and outgoings.

Which is best for you?

Which type of business formation you opt for your personal training business is down to you and its recommended you seek professional advice but there’s nothing to stop you starting as a sole trader and moving to Private Limited company status at a later date should you wish to expand or attract investment to grow.

See also: what insurance do personal trainers need?

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