sole trader

Being a sole trader is one of the simplest ways to get started in business, but there are many processes that need to be followed to ensure a smooth tax assessment each year. If you are you considering starting a business as a sole trader or have been operating for a while, we can help minimise the hassle and maximise the benefits

The main advantages of setting up as a sole trader are:

Total control – You have total control over the business. Decisions can be made quickly and easily, from accountancy and financial decisions to general business decisions.
Easy to change to another trading identity. It's far easier to change your trading identity from sole trader to a limited company.
Keep the profit – as the owner, all the profit belongs to the sole trader.
Business affairs are private – Seeing that your business is attached to you financially, competitors cannot see what you are earning, so will know less about how your business works and how it succeeds.

The reasons why sole traders are often successful are:

Can offer specialist services to customers – For example: Service Garage.
Can be sensitive to the needs of customers – since you are closer to the customer that allows you to react more quickly than a larger limited company.
Can cater for the needs of local people – a small business in a local area can build up a following in the community due to trust.

The main disadvantages of being a sole trader are:

You are personally liable and accountable for all your businesses debts. Should your business fail you could end up losing your personal assets such as your home, car, etc.
Can be difficult to raise finance, because you are small and all finances are personal, banks will not lend you large sums and you will not be able to use any other form of long-term finance unless your change your ownership status.
Can be difficult to enjoy economies of scale. As a sole trader, for instance, you may not be able to buy in bulk and enjoy the same discounts as larger businesses.

How we can help

Let us help you make the most of your resources, and reduce the stress of running your own business.