You don't need to set up a Ltd Company to be in business!
Many small businesses start life as a sole trader and carry on that way for ever. But there's nothing to stop you setting up as a sole trader now and changing to a Limited Company later on.
Sometimes it's more sensible to set up as a Limited Company right from the start. See our article how to set up and run a limited company
for more information. It's very important you seek guidance from a qualified accountant or legal adviser
on this matter.