Sole Trading
3. What is a Sole Trader?
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 23 Sep 2015
- A sole trader is a person who carries on a business as that legal individual rather than as a separate legal entity. The person and the business are considered one and the same for all taxation and legal purposes.
- Often individuals operating as a sole trader will choose to use their own personal name as the business name. Others decide to register a business name through the Australian Securities and Investments Commission (ASIC).
- Operating your business as a sole trader is generally the simplest and most easily manageable option for individuals. This is because there are fewer additional obligations or responsibilities compared with other business structures.
- However the benefits of operating a business as a separate legal entity such as through a trust or company are not available to sole traders.
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