Should I become a Ltd company? (Massage therapist)

[nomorespaghetti]

Hi, hoping I can pick some legal brains please. I am a massage therapist. I’m currently mobile, I am a sole trader, and I have insurance (combined malpractice, public and products liability).

I’m a bit of a stickler for doing things by the book, and I’m also a worrier 😂 I have a fear that someone will sue me and the insurance won’t cover it (the main exclusion I’m worried about is a client having a contraindication that means I shouldn’t treat them. I do always check with my insurers before I treat someone with a medical condition, and I don’t treat if it’s not appropriate, or I refer to GP, but STILL I WORRY! A lot of my clients are elderly ladies so there are a lot of medical things!)

I’m wondering whether it would be better to become a limited company rather than being a sole trader, so that my liability is limited. BUT - in the case that I was negligent, could someone still sue me personally rather than the company? In which case all the faff of registering as a Ltd company wouldn’t be worth the hassle.

In this case, is there any advantage to becoming a Ltd company?

Thank you

I freelance as a financial advisor, and when I started I was advised to trade through a Ltd Co so that I personally (and my house/other property) would not be liable should anyone claim negligence.

I think that sounds like the best option for you too.

You'll have greater accountancy fees as a ltd company, but possibly save some money on tax. I think if you're that worried and anxious it may be best to go ltd just to put your mind at ease. Make sure you still have all the insurance you need.

I’m a limited company and I do my own accounts.

Having a small limited company will not remove your liability. People that think this are completely mistaken. The limited company will cost you more to run, and the tax benefits will depend on your level of income/costs. I would usually advise people against it unless it makes a big difference (i.e. they are extremely profitable).

Provided you are selling your services through the Ltd Co, I think it would be incredibly difficult for someone to sue you personally - unless your negligence was so bad that you could be sued as a Director of the company. And presumably your practice is professional, you have demonstrable experience/training plus you would risk assess each client/recommended technique to ensure that you are making an informed decision each time? Plus all practitioners -from dentists to therapists - now use detailed questionnaires with each client, my dentist asks me to sign confirmation each time that nothing has changed, so if one of your clients hadn't notified you of something they would have no claim.

I also have professional indemnity insurance - I guess this is the same as your malpractice insurance?

Just cover all the bases you can reasonably be expected to, get a Ltd Co set up, and you'll have done everything you can.

A director of a Ltd company can be held personally liable for negligence. They can also face criminal conviction.