Sole Traders
Definition: Sole traders are individuals who own and operate a business on their own, without shareholders. They are the same legal entity as the business.
Advantages of Sole Traders:
- Complete control over the business
- Simplicity of starting and minimal paperwork
- All profits go directly to the sole trader
- Quick and easy to set up
Disadvantages of Sole Traders:
- Unlimited liability
- Limited access to financing
- Difficulty in taking time off or delegating tasks
- Increased workload and stress