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Sole Trader
By Heather Platts BA(Hons) | Updated August 26, 2007
Being a sole trader is perhaps the simplest way to set up and begin running a business - there is no registration process and it costs nothing to you to begin the business. Here are the main points to this stucture.
Having raised the money to set up your business - either from personal investment or from a bank say - the responsibility for how your business should run and be managed is down to you. Any profits your business then makes are yours - however, so to are any liabilities.
Your home or any other personal asset could be called to cover debt or business losses.
You will be expected to make a self assessment tax return annually and keep a record of income and expenses.
Also as self employed all profit will be taxed as income and you will have to make National Insurance contributions (NIC).
Still not sure? - Check out the other legal structures or call us.
Topics: Setting-up a New Business |
