Advantages and Disadvantages of a Sole Trader
Thinking to set up your own business in the U.K? Then, becoming a sole trader or a sole proprietor in the U.K could be the best option for you.
The one who has complete control of the business in his/her own hands and are responsible for the way a business operates.
Being the owner of all the business assets and any profits generated by the business itself, the sole trader also has the responsibility for all the debts and liabilities their business incurs. Do you know sole trader is supposed to be registered as self-employed with HMRC? Yes, you have heard that right, besides being registered with HMRC they too have to submit an annual self-assessment, but overall their accounting requirements are less burdensome as compared to a limited company.
Whether a sole trader, a limited company or a partnership firm, each one has its own pros and cons. When it comes to a sole trader, let’s see in detail what advantages and disadvantages it has in store: