Sole Trader

Sole Traders

This is a business that is owned by one person. 

A sole trader is one of the most common business forms in the UK. A sole trader can have more than one employee.

Advantages

1. Less accounting and administration required
2. Easy to close down the business
3. Quicker decision-making
4. It is cheaper and quicker to set-up 
5. A business owner can keep all the profits
6. The business owner has total control

Disadvantages

1. You take on all of the responsibility and stress of making all the day to day decisions  
2. Unlimited liability
3. Ownership problems if the sole trader dies
4. It can be difficult to raise capital