Setting up a long-term business that won’t make money - yet

[LongTermHold]

I have seen a gap in the market for a product/business that will take years to come to fruition and make any money. Basically, it requires years to pass before it can realise value.

In the meantime, I will need to spend money. (Think, buying wine to store to sell it when aged etc). Should I bother to set up a company now or is it just a hassle?

The outlays won’t be enormous and I won’t need to borrow. The returns could be significant.

It depends on whether you want the protection that comes with being a limited company. As a sole trader you are liable for any debts. If the business fails anyone you owe money can come after you personally. If you become a limited company you will not be personally liable for the debts of the business. However, the bank is likely to ask you for a personal guarantee against any overdraft or bank loan, so you will be liable for those things.