Sole trader- individual trading in her own name or under suitable trading name
Usually self employed for example plumbers and shopkeepers
They can employ staff as well
Main feature is that they have full responsibility over financial control and also meeting running costs as well as tax
Having full responsibility for all debts of the business is called unlimited liability
Unlimited liability can be risky as if the business goes in a huge amount of debt than the owner is responsible for paying all of it back and may have to sell personal assists such as their houses
Small business which aren’t really profitable are most likely to be a sole trader
Sole trader may Grow and expand and take on different forms of legal ownership