Sole Trader is the simplest form of company that is used to describe someone who works for its interest without having a formal procedure entered as a limited or unlimited company. Operations can be easily arranged and started immediately. Single trader business owners have full control over the company where owners can decide business ways can be done. The owner of a single trader has the authority to restructure and dissolve the company whenever it is suitable.
This is a type of business that contains a greater and personal risk than a limited liability company. As the only trader, the company owner is responsible for all aspects of the business. For a single trading company, it is not easy to attract outside investors or partners who secure business growth. In the event that the size of this business is quite small, but the number of single business traders is very large compared to other business forms
Single trader business can be easily arranged. No formal procedures are needed to start operations, which can often start instantly. To organize a single trade business, it is not required to send accounts or notes in the company’s home.
Single trade differs from limited companies as follows:
If you are a single merchant then according to your law are people who work on your behalf or individuals who work alone and work for others as one person or individual. But in the case of a limited company it is estimated by the law that there are other people who work with you in the scope and power of a company director.
As a single trading business you have to keep your business record and send your account details, but in the case of a limited company, it is expected to appoint an accountant and submit an annual or two-year account by providing all information about their financial affairs. . If a limited accountability company falls into bankruptcy or liquidation, the company is to face not individuals who run a business. But in the case of bankruptcy or liquidation of a single trader company, the owner will be responsible for the difficulties or difficulties that have not been paid.
Advantages of Single Trade Business:
Easy to arrange: Trader Sole Business is the simplest business. You can easily manage your single trade business. You can trade as you are looking for. No formal procedures and businesses can begin immediately
Full control over your business: As a single trader you have full control over your business and you can make decisions according to your suitability without consulting and taking permission from other partners
Easy to change: Single trader business can be converted to limited companies easily
Easy Accounting Maintenance: As a Single Trader, you can save all your financial affairs records
Personal services: To attract your customers, you can give it personal service
Losses from a single trade business:
1) Business with the biggest personal risk
2) It’s hard to attract outsiders
3) You might have difficulty attracting outside investment