Setting up as a sole trader remains the most popular way to start trading. It may feel daunting at first, but now is no better time to do it. With over 3 million sole proprietorships in the UK, accounting for 56% of UK private sector businesses, take comfort from the fact you are in good company and there are many resources out there, so you can start out in confidence.
If you are a sole trader, you are a self-employed person who owns and runs their business as an individual.
As a sole trader there is no separation between you and your business. This means that you get to keep all your business’s profits after tax, but you are also legally responsible for all aspects of the business including any debts or losses.
You must also follow certain rules on running your business and naming it.