Business type: Sole Proprietor
Sole proprietor also commonly known as a sole trader. A sole trader is a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business. All profits and all losses accrue to the owner (subject to taxation). All assets of the business are owned by the owner and all debts of the business are their debts and they must pay them from their personal resources. This means that the owner has unlimited liability.
Advantages
Easy to set-up.
Less paperwork.
Taxation is simpler, normally through Self-Assessment.
You get to keep all the profits.
You run the business how you want.
Disadvantages
Unlimited liability for debts and legal costs.
More difficult to raise capital.
As the business grows so do its risks.
Death of the owner ends the businesses.
More difficult to attract high calibre employees.
