Thursday, 24 November 2011

Different Types Of Businiess / Sole Trader



Sole Trader

This is the simplest type of business, requiring no other registration other than the notification of your local tax office, but it is also the business that is exposed to the greatest personal risk.

Sole traders are responsible for all aspects to the company, and have unlimited liabillity to all debts and legal actions. This makes it harder to attract  outside investors or partners which will in turn hinder the expansion and progress of your business.

As a sole trader you are effectively the business, for example Joe Bloggs trading as JB Design. If the business were to fold with depbts you have to settle these debts from your personal assets

Jack Spratt



Jack Spratt is a Cafe and continental style bar located in a town called Devizes. It is a single entitity that is owned completely by the owners.

Businesses of this size and sector are typically of the Sole Trader business type.

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