A Sole Trader is a person who trades as an individual, without the use of a company structure or partners. The proprietor is the sole owner of the business and has sole control over it. Therefore, the individual bears the full responsibility for the actions of the business. This is the simplest form of business ownership and can be started with little capital outlay.
The sole trader can trade under his or her name, or register a business name. However, registration of a business name does not make the sole trader a separate legal entity. The business belongs to the sole trader who personally responsible by law. Registration under a business name has no legal implications other than to allow that individual to use and trade under that name.
A distinguishing feature of the sole trader is the nature of any legal liability. While the sole trader retains the profits from the venture, the liabilities with regard to claims from creditors extend to personal assets. No distinction is made between business assets and personal assets
Want to learn more about your business structure for your art & Design?
It’s as simple as 1… 2… 3…
2: Send an e–mail Quantum Compass: Soletrade@QuantumCompass.com.au and receive your PDF “ The Advantages and Disadvantages of being a “Sole Trader”
3: Contact Vinh for a no cost, no obligation coaching session: http://www.surveymonkey.com/s/ArtShineDiscovery
