A sole trader operates a business or invests under his or her own name or registered business name. The sol trader makes all purchases of equipment, rents premises and employs the staff necessary to establish the business.
The sole trader derives all income and is liable foe all costs.
The profit is declared as income in the sole trader’s individual Tax Return. Tax is paid at individual rates of tax.
The sole trader can be considered to have the following advantages:
- There are minimal costs involved in administration of the business structure.
- All monies earned by the business are the property of the sole trader.
- The sole trader has complete control of the operations of the business.