What are the Advantages and Disadvantages of choosing a Sole Trader business entity?

Advantages: 

• You have sole ownership and full control over all aspects of your business including day-to-day operations and can add your own personal touch. 

• You’re able to make decisions on your own. 

• Setting up as a sole trader is quick and easy. 

• There is less Admin involved. 

• There is more privacy. 

Disadvantages: 

• You have unlimited liability because your business is not a separate entity from yourself. 

• Limited capacity for growth as obtaining loans or attracting investors can be more difficult. 

• You cannot take on other business owners and co-founders 

• You must be financially independent and bank loans may not be easily acquired. 

NB Unlimited liability means that a sole trader is personally liable (responsible) for any debts the business builds up.