Sole Traders & Partnerships

Sole Traders & Partnerships...

Sole Traders:

Barber's shops usually operate as sole traders

A sole trader describes any business that is owned and controlled by one person, although they may employ workers, for example a newsagent's shop. Individuals who provide a specialist service like hairdressers, plumbers or photographers, are also sole traders. Sole traders do not have a separate legal existence from their owner. As a result, the owners are personally liable for the firm's debts, and may have to pay them out of their own pocket. This is called unlimited liability

Advantages:

1) The firms are usually small,…