Define: Sole Trader

Business, Legal & Accounting Glossary

Definition: Sole Trader

Quick Summary of Sole Trader

An individual owning and operating a business alone.


Examples of Sole Trader in a sentence

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.

Synonyms For Sole Trader

proprietorship, sole business, sole proprietorship, individual entrepreneur, sole professional

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Sole Trader. Payroll & Accounting Heaven Ltd. April 05, 2020
Chicago Manual of Style (CMS):
Sole Trader. Payroll & Accounting Heaven Ltd. (accessed: April 05, 2020).
American Psychological Association (APA):
Sole Trader. Retrieved April 05, 2020, from website:

Definition Sources

Definitions for Sole Trader are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 7th January, 2020