Sole Traders
One of the easiest ways to setup a business is by becoming a sole trader. This is because it doesn’t involve paying any registration fees and keeping accounts and records is relatively straight forward. Sole Trader setups are often appealing to individuals looking to setup a business as it allows them to keep 100% of the profits.
Like every business structure there are advantages and disadvantages to being a sole trader. The main risk associated with being a sole trader is personal liability. You are personally responsible for and debts run up by your business. This creates a certain element of risk.
The setup process for becoming a sole trader is fair straight forward. Individuals need to register as self employed and decide how to raise the capital to run an effective business. Like every business Sole Traders must keep accurate records and pay tax accordingly.
There are many forms of business and each has its set of requirements. HMRC provide further guidelines on these.
