Branching out with your own business

Sole Trader

If you're raring to go with your new business venture, starting off as a sole trader may be the most suitable option for you.

As with all things, there are pros and cons you should be aware of before making a decision on the legal status of your enterprise. We'll take a look at some of the below:

Advantages of being a sole trader

  • Flexibility - it's easy to change to a partnership or limited company later as your business grows 
  • Lack of documentation - there are no procedures or forms to fill in to set up as a sole trader
  • Easy banking - you can have a bank account in your own name or trading name 
  • Simple accounting - annual trading accounts and personal tax return 

Disadvantages of being a sole trader

  • Personal unlimited liability - no protection from company debts
  • Perceived lack of credibility - some businesses will only deal with partnerships or limited companies 

If you have any questions about the information above or any other queries about operating as a sole trader, give us a call now to set up a meeting.