Sole Trader – what is it?

Sole trading is the easiest, cheapest and least formal way in which to set up in business as well as manage that business. A sole trader runs a business as an individual, makes all decisions affecting the business and owns all the assets of the business personally, meaning a sole trader keeps all the profits of the business after the relevant tax has been paid. Operating as a sole trader means having sole responsibility for the business. It does not however mean that the sole trader has to work alone, many may choose to work alone but sole traders can, and often do, take on staff.