Sole trader is basically you trading as your business. For example Fiona’s Flowers, or Greg’s Hairdressers, or Paul Power Landscapes. It is the most popular choice of trading identity for those offering either a service or a small retail concession.
Some important advantages to trading as a sole trader
- Easy to set up without any costs. You simply trade as you are, eg Paul Power trading as Paul Power Landscapes.
- Complete control over your business. You are your business, which means you can retain complete control over all your business-making decisions without having to consult other directors, partners etc.
- Easy to change to another trading identity. It’s far easier to change your trading identity from that of sole trader to a limited company. Going the other way, ie, limited company to sole trader, can be very expensive and bureaucratic.
- Accounting. Your trading accounts do not have to include a balance sheet such as you would have to provide for a company.
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