No, you do not need to become a limited company. In some ways, being a sole trader, it does make life a little bit easier when it comes to accounting.
A limited company is treated like a separate entity from you, meaning that, if you are going into a big corporate contract where there is lots of money involved or where there is a greater risk for you in some way been a limited company offers you, as an individual, some level of protection. Therefore, there does come a point where becoming a limited company makes much more sense.
