Definition: 'Sole Trader' and 'Self-Employed'
May 21 2007
Being a sole trader is the simplest way to run a business, and does not involve paying any registration fees, but you must register as self employed. Keeping records and accounts is straightforward, and you get to keep all the profits. The difference is that you are personally liable for any debts that your business runs up, which can make this a risky option for businesses that need a lot of investment.
Use the interactive tool on the Business Link website to choose which legal structure is right for your business.