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.