For Sole Traders
A sole trader has complete individual control over the business and all the profits of the business go to the sole trader. The disadvantage of this structure is that liability also lies with the sole trader including debts and legal claims against the business.
If a sole trader fails in their enterprise they can walk away relatively easily as long as they have no creditors. There is always a risk of being made bankrupt as a sole trader if you are unable to pay the debts of the business as they fall due. The buck does stop with you so care should be taken to keep control of your finances and assets.
For more information on the above contact our corporate and commercial lawyers on 0161 926 9969 or email firstname.lastname@example.org