This is the simplest form of business since it can be established without legal formality. However, the business of a sole trader is not distinguished from the proprietor's personal affairs.
As a Sole Trader, the individual is the business and, as such, would be personally responsible for any loan or credit agreements. Even though a Sole Trader can be VAT registered and have employees, there is a slant that this is a smaller operation than a Limited Company. However, there is a much reduced level of administration.
This is the simplest way of trading. There are only a few formalities to trading this way, the most important of which is informing HMRC. You are required to keep business records in order to calculate profits each year and they will form the basis of how you pay your tax and national insurance. Any profits generated in this medium are automatically yours. The business of a sole trader is not distinguished from the proprietor’s personal affairs so that if there are any debts, you are legally liable to pay those debts down to your last worldly possession.
Argo Business Compliance provides the level of support to meet the business needs both for the current position and for future development of Sole Traders.
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