After thinking about it for a few years we have finally bitten the bullet and incorporated Blue Skies Research Ltd as a private company. Since there are two of us, we couldn’t very well set up as a sole trader and a partnership didn’t seem particularly attractive either. For our situation, the tax situation seems fairly similar in all cases: income tax and NI contributions on the one hand, versus corporation and dividend taxes on the other.
What precipitated the action is still under discussion, but will probably (hopefully!) be blogged about in the future some time. The overarching aim is to enable us to collaborate officially in research and funding applications with other partners: if anyone out there has a bit of spare end-of-project budget burning a hole in their pocket, or is considering a funding application that could benefit from our expertise, then we would certainly be interesting in hearing about it but we aren’t really planning a huge push for funding and world domination. Well not quite yet anyway 🙂