It depends on your income level, risk appetite and long-term plans. Operating as a sole trader is simpler and works well for most hosts with one or two properties. A limited company can offer tax efficiency if profits are high, particularly if you retain earnings rather than drawing them all as salary, and it provides limited liability protection. However, it also brings additional administrative costs including Companies House filing, corporation tax returns and accountancy fees. Most hosts starting out are better off as sole traders and reviewing the company structure question once annual profits consistently reach a level where the tax savings outweigh the admin burden. Speak to an accountant familiar with short-let income before deciding.