What is a Sole Trader – Leigh Barker MWC Group

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What is a Sole Trader

• Leigh Barker MWC Group

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an individual operates a business as the sole
person

• Where an individual operates a business as the
  sole person they are generally referred to as a
  sole trader.
• Becoming a sole trader is the simple and
  relatively inexpensive. A sole trader has full
  control of all assets, makes all business
  decisions, is a low cost structure and has fewer
  reporting requirements

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Characteristics of Sole Trader

• Unless a business name is required, set up costs
  are negligible
• Administration is generally limited to
  bookkeeping and accounting
• A sole trader retains all the profits of their
  business
• A sole traders financial information is kept
  private
• A sole trader is legally responsible for all
  aspects of the business
• A sole trader is personally liable with unlimited
  liability

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Most popular with tradesman and specialist
service providers

• A sole trader business model is most popular with
  tradesman and specialist service providers prior
  to commencing business as a sole trader
• determine if any form of authorisation or
  registrations are required from regulators or
  local authorities
• consider managing the business separately by
  operating from a separate bank account
• ascertain if business insurances are required or
  desirable
• find suitable premises to operate from within

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easy to change

• As a sole trader business grows it is relatively
  easy to change this form of business structure or
  to close a business operating as a sole trader.
• Prior to deciding on a business structure seek
  professional advice from an accountant, solicitor
  or business advisor to ensure that the structure
  selected meets your personal circumstances and
  business objectives.

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Leigh Barker MWC Group

• Please note Prepared by Leigh Barker MWC Group,
  Accountant, Portfolio Finance, Gordon, West
  Pennant Hills and Tangible Assets,. Note that all
  content of this blog is general in nature and
  anyone intending to apply the information to
  practical circumstances should seek professional
  advice to independently verify their
  interpretation and the informations
  applicability to their particular circumstance.