What Is A Sole Trader – Accounting Firms In Uk
August 17, 2022 ⚊ 1 Min read ⚊ Views 108 ⚊ BLOG
A straightforward form of company organisation, often known as a sole proprietorship, a sole trader is characterised by the fact that only one person is responsible for both the management and ownership of the enterprise. A single proprietor has the right to keep all profits after taxes have been paid, but they are also responsible for covering any and all losses that their business sustains. Although many people use the term to refer to businesses in which the owner is the only
employee, the actual definition of “sole trader” refers to the legal structure of the business rather than the number of employees the business has. This is in contrast to the common usage of the term, which refers to businesses in which the owner is the only employee. In light of this, a company that is registered as a sole trader may just consist of the business’s owner, but it is also possible for the business to have extra employees in addition to the owner.
