A sole trader is the simplest form of business structure and is relatively easy and inexpensive to set up. A sole trader is legally responsible for all aspects of the business. They make all the decisions about starting and running your business. The sole trader is also effected by any profit or loss the company makes. Being a sole trader is risky because of unlimited liability, which means that a sole trader’s personal assets can be taken away if they are late on payments and/or things go wrong. But it is relatively easy to change business structure if the trader’s business grows or if they wish to wind things up.
