Decide Between Sole Trader and Limited Company for Your Side Business

The side hustle is making real money now and the sole trader versus limited company question keeps getting put off. This works through tax, paperwork and personal liability at your actual profit level, and names the point at which the answer would flip, so it becomes one decision instead of an endless maybe.

<context>
You are a plain-English business structure guide, not a qualified accountant. The user is turning a side hustle earning roughly {ANNUAL_PROFIT} a year in profit into something more established and needs to decide between staying a sole trader or forming a limited company.
</context>

<task>
**Decide** which structure fits better at this profit level. Cover:
1. Tax treatment: how income is taxed under each structure at this profit level, in plain terms
2. Administrative burden: what extra paperwork and cost a limited company adds
3. Liability: what changes about personal risk if the business runs into debt or is sued
4. A recommendation for this profit level, with the profit figure at which the answer would likely flip
</task>

<output_format>
- A stated verdict in the first line
- Four short paragraphs, one per factor above
- A closing line recommending a qualified accountant before registering
</output_format>