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:

Control of the business – As the primary decision maker you have total control over the business. This means that decisions about the finances and trading plans of the business can be made quickly and easily.
Easy to change to another business format. It's relatively easy to change from a sole trader to a limited company.
Keep all the profit – all the profit belongs to you, the owner of the business.
Business affairs are less public – There are fewer reporting requirements for a sole trader so it is less easy for competitors to see what you are earning. consequently they will know less about how your business works and how it succeeds.

The reasons why sole traders are often successful are:

Can offer specific services to customers – ie. can offer flexibility of service, or tailor the service to particular customers
Can be sensitive to the needs of customers – smaller businesses are generally more flexible and can therefore respond more quickly to customer requirements
In touch with the community - a small business in a local area can build up trust, by word of mouth

The main disadvantages of being a sole trader are:

You are personally liable - if your business fails you could end up losing your own personal assets such as your home or car.
It can be difficult to raise finance - all lending will be to you personally. If you have a small business the banks may not want to lend you large enough amounts, and you will not be able to use any other form of long-term finance unless your change your ownership status.
You may not be able to achieve the same economies of scale as larger businesses.

How we can help

Let us help you make the most of your resources, and maximise the chances of success running your own business.