Sole trader

• What is a sole trader?

  A business owned and run by one person
• What is the typical size of businesses that operate as sole traders?

  They are usually start-ups or small businesses
• Who can be a sole trader?

  Photographers, electricians, and bloggers
• What does unlimited liability mean for a sole trader?

  The owner is personally responsible for all debts
• What type of tax do sole traders pay on their earnings?

  Income tax
• What are the advantages of being a sole trader?

  • Quick and easy to set up
  • Owner has control over the business
  • Opportunity to be one's own boss
  • Low set-up costs
• What are the disadvantages of being a sole trader?

  • Risk of unlimited liability
  • Long work hours and stress
  • High level of responsibility
  • Owner performs many roles