When starting a business, you will have to choose between being a Sole Trader or setting up a Limited Company.
The Sole Trader option only requires a phone call to HMRC, whereas incorporating a company involves registration with Companies House and administrative aspects such as filing of annual return and annual accounts. However, trading as a limited company has many benefits:
The Limited Liability means your personal assets are being protected. All you are at risk of losing is the money you have invested in the company.
Customers sometimes prefer dealing with companies rather than individuals. It provides them with the added reassurance of a long standing, well established business.
Opening a bank account with a limited company’s certificate of incorporation is really straight forward, unless you have encountered financial issues in the past (i.e. declared bankrupt), there should be no reason for a bank to decline your application. Applying for a loan through a Limited Company is also more likely to get approved & make the process easier.