Business Structure Sole Trader

A sole trader is the sole owner of a business has all of the control of the business and is entitled to all of the profits.

Business structure sole trader. A sole trader business structure is where the business and the owner are one and the same. Different business structures have different benefits and disadvantages. As a sole trader you run your business as an individual.

You can choose a business name subject to certain rules or your own name. As a sole trader you will be legally responsible for all aspects of the business. Advantages of being a sole trader.

They can also hire people if they want to. There is no separate legal entity other than the individual owner. Small business owners who restructure by transferring assets from a sole trader partnership or discretionary trust into a company structure may be eligible for a duty exemption on the transfer.

A sole trader is the simplest form of business structure and is relatively easy and inexpensive to set up. If you re unsure about what s right for your business our step by step guide can give you a simple and quick assessment of which structure is more suitable for your business. As a sole trader you don t need to have a separate business bank account however there are many benefits to doing so such as keeping your personal and business expenditure separate.

If you are planning to operate your business alone without any partners including your spouse then a sole trader structure may be right for you. You ll generally make all the decisions about starting and running your business and you can employ people.