Sole trader individual

This is the simplest business structure. All business decisions are made by the owner. The business is generally not a separate legal entity from the owner.

The owner receives all profits, subject to taxation specific to the business, and has unlimited responsibility for all losses and debts. The most simple but not necessarily the easiest arrangement is that of the sole trader, for whom the primary legal prerequisites for trading would include the following– registration of a business name, obtaining all necessary licences and/or permits required by law, the annual lodgement of tax returns.