Sole Trader

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  • Sole Trader
    • A business owned by one person (but may employ others)
      • A sole trader has full responsibility for the financial control of their own business and for meeting running costs and capital requirements.
    • Advantages
      • Freedom- the sole trader is their own boss and has complete control over decisions.
      • Profit- The sole trader is entitled to all the profit made by the business.
      • Savings of fees- There aren't any legal costs like you'd get with drawing up a partnership agreement or a limited company document.
    • Disadvantages
      • Risk- There's no one to share the responsibilities of running the business with.
      • Time- Sole traders often need to work long hours to meet tight deadlines.
      • Unlimited Liability- The sole trader is responsible for all the debts of the business.


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