Sole proprietorship – advantages and disadvantages
If your business is small and the capital investment is minimal, you might consider operating as a sole trader.
A sole trader has the following advantages:
you’re the boss
you keep all the profits
start-up costs are low
you have maximum privacy
establishing and operating your business is simple
it is easy to change the legal structure of your business later on if circumstances change.
Disadvantages of sole trading include that:
you have unlimited liability for debts as there’s no legal distinction between private and business assets
your capacity to raise capital is limited
all the responsibility for making day-to-day business decisions is yours
retaining high-calibre employees can be difficult
it can be hard to take holidays
you’re taxed as a single person the life of the business is limited.
Thinking it’s time you made a change of accountant, please give us a call (07) 3804 7575. With over ten years of combined experience working with a diverse range of clients, Accountants 360 is well equipped to assist your business. We offer Bookkeeping and Tax Services and would love to help you succeed.