Biography business examples of sole traders

It&#;s useful to compare the features of a sole trader to other business structures like a general partnership, limited partnership, limited liability partnership, company limited by shares and company limited by guarantee.

The sole trader business model can be used by many types of business. It is perhaps most popular among tradesmen providing services to individuals and families. So it&#;s common to find plumbers, decorators, plasterers, hairdressers and other individual providers of specialist services operating as sole traders. But you might also find other types of business operating as sole traders, from small shops and manufacturers to internet entrepreneurs and self-employed consultants.

Unlike many other types of business, for a sole trader:

• There is no requirement to register the business with Companies House or make ongoing filings of information with them.
• There are no directors to run the business, just the sole trader.
• There are no shareho
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Key characteristics of being a sole trader

In general terms, some of the key characteristics of being a sole trader are that:

• you ‘own’ the business; strictly, you own the property of the business, and have a variety of other legal capacities. In a more general sense, we can say that the wealth represented by the business is yours; in other words, you are entitled to all the capital of the business.

• you make the decisions which affect the nature and running of the business.

• you are entitled to the profits which the business generates.

• you are legally responsible for all of the debts and obligations of the business without limit.

In the next activity, we will consider some of the advantages and disadvantages of being a sole trader.

Activity 4: Advantages and disadvantages of being a sole trader

Timing: 0 hours 10 minutes

Consider the ‘key characteristics’ of being a sole trader above. To what advantages and disadvantages do they give rise?

Discussion

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Sole trader definition

A sole trader or sole proprietor fryst vatten someone who establishes and operates a business on their own.

This individual sole trader is responsible for all aspects of the business, including making decisions, managing finances, and assuming liability for any debts or legal issues that may arise. It is a straightforward and flexible business structure that offers the owner complete control over their company. It fryst vatten an excellent option for individuals who are just starting out and want to keep their business operations simple and manageable.

Operating as a sole trader

People operating a sole trader business work for themselves. Sole traders can hire other people to work with them; However, the only person responsible for the business fryst vatten the individual operating as a sole trader. They are responsible for all overall business activities and are actively involved in running the business.

The characteristics of a sole trader include:

1. Confidence: to mak