Sole Trader

also known as Sole Proprietor

What is a sole trader?

A business that is owned by one person. A type of business that can be found almost everywhere. The owner takes total control of the business and the business affairs are private. The owner keep all the profit. A business that is cheap and easy to start.

But
The owner also may suffer all the debts that the business incurs as the business can have unlimited liability. It also can be difficult to raise finance because the business is small, banks will not lend them large sums and they will not be able to use any other form of long-term finance. There is a problem of continuity if the sole trader retires or dies.

So
All the risks often put potential sole traders off setting up businesses but also makes them consider the other forms of business structure.