Business, Legal & Accounting Glossary
An individual owning and operating a business alone.
Due to their lack of limited liability status, sole traders and partnerships are not considered to be separate legal entities from their owners.
The steps involved in becoming a sole trader is relatively simple in comparison to other business structures.
Sole traders all usually responsible for making all operational decisions and are solely responsible for raising business finance.
Critics argued that the provision of such a large tax advantage for established brands was unfair to many sole traders.
A sole trader is able to employ staff, but is also personally responsible for any losses the business makes.
In UK law a sole trader is considered the simplest type of business structure.
The statistics demonstrate an improvement in the number of bankrupt sole traders during the previous year and up to July 2019.
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This glossary post was last updated: 7th January, 2020