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What’s a Sole Trader? Basically it means the business decisions are being made by one person.
Of course, it doesn’t necessarily mean that the business has only one worker. The sole trader can employ others to do any or all of the work in the business.
What are the advantages?
This type of structure is ideal if the business is not complicated, especially if it does not require a great deal of outside capital.
What are the disadvantages?
Limiting liability Talk to an accountant or lawyer about the legal ownership of personal assets or the use of trusts to limit liability.
For instance, the family home may not be exposed if it is in the name of your spouse – you must get legal advice before you do this, because there are other consequences, especially if the spouse dies or you divorce. Also, you may not be able to do this if your sole purpose is to avoid a creditor.
Rodney Quinn, Quinn Transport
Phillip Cross, Royce Cross Agencies