# Converting from Sole Trader to Ltd **Why bother converting?** A lot of sellers start as sole traders because it feels simpler at the time. That's fine — but as your business grows, the reasons to switch become harder to ignore. Limited liability means your personal finances are protected if something goes wrong. A Ltd company is more tax efficient once you're earning properly. And wholesale suppliers take you more seriously when you're trading as a registered company rather than just yourself. The catch is that changing your entity type on Amazon isn't just a form update. It triggers a full account re-verification, which can cause delays if you're not prepared for it. *** **Steps to convert** **1. Register your Ltd company** Do this first before touching anything on Amazon. Use Companies House directly or a formation agent like Tide. **2. Notify HMRC** Once your Ltd is incorporated, inform HMRC that you're ceasing to trade as a sole trader. **3. File your final sole trader tax return** HMRC will require a final self-assessment. If you have assets like stock or equipment, these may need to be formally transferred to the new Ltd company. An accountant can help you here — it's worth getting this right. **4. Open a business bank account for your Ltd** Amazon will need your Ltd bank details as part of the entity change. Make sure this is in place before you start the Amazon process. *** **Informing Amazon** Once everything above is sorted: * Open a case in **Seller Central support** — explain that you're changing your entity type from sole trader to Ltd * Amazon may direct you to email [**seller-verification-enquiry@amazon.co.uk**](mailto:seller-verification-enquiry@amazon.co.uk) with your documents * They'll guide you through their re-verification process from there Be patient with this — it can take a few weeks. Don't stop selling in the meantime unless Amazon specifically asks you to pause. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://behind-the-buybox.gitbook.io/behind-the-buybox-docs/setting-up-your-ltd-company/converting-from-sole-trader-to-ltd.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.