A sole trader, also known as a sole proprietorship is a simple business structure where one individual runs and owns the complete business. As a sole trader, he/she is legally responsible for all business aspects and personally liable for their business finances. They can keep any profit from their business, at the same time they may also have to repay any debts out of their pocket.
It is one of the most common and easiest company structures for new businesses and entrepreneurs. On the other hand, a sole-trader is self-employed but he/she is not necessarily the only person within the business. Hence, sole-trader refers to the legal structure, rather than the number of employees.
Here’s our super simple guide for sole-traders. Download the pdf and keep it handy for future reference.