Sole Trader

A sole trader is an individual who owns and runs their own business independently. They are personally responsible for all aspects of the business, including its debts and obligations. This type of business structure is straightforward to establish, with minimal formalities. Sole traders keep all profits but also bear all risks, meaning their personal assets could be used to settle business debts. This setup is common among small businesses, freelancers, and self-employed professionals, offering control and simplicity while requiring careful management of financial and legal responsibilities.