You don’t need to no, but we do suggest it as it is a much safer way to do business in our opinion.
If you work as a sole trader, then you would need to borrow money under yourself which puts you at risk personally. If you become a limited company and need to borrow for business finance, then the limited company would borrow it and you may be asked to be a guarantor. However if anything were to go wrong for whatever reason, then the business folds but you don’t as an individual.
When going into business, you have to think of all possible outcomes. It would be silly not too and as much as we love to believe in the universe and all it has to offer us, sometimes things just may not work out and we want you to be as protected as possible,
A lot of our Franchisees work with a company called tax Assist, and they have written a really great article from an accounting perspective HERE if you wanted to understand more of the financial implications.