Sole Trader

A Sole Trader is a business under the individual’s name. All decision making rests on the individual. It is the simplest business structure with low startup cost and it is relatively easy to maintain. The individual is entitled to all business profits.

However, it also has it disadvantages. There is unlimited liability, which means the individual personal assets a liable to business debts (i.e. a creditor can use personal assets to pay off the debt). It does not have the same tax planning opportunity as a company or trust. The business income is assessed along with any other assessable income that the individual might have.