Advantages of being a Sole Trader
The Benefits of being a Sole Trader
Have You Considered Starting Your Own Business? Starting Off As A Sole Trader Is One Of The Most Popular Choices For Many Reasons…
When opening your own business, you might have given some thought and consideration on becoming a sole trader, also known as a sole proprietor. It is the most popular way of starting up a new business in the UK, especially for those going into business on their own for the first time. Here are the advantages of being a sole trader…
Sole Traders have Full Control of Their Business
As a sole trader you are in full control of your business, ultimately you are “your own boss”. There is no need for you to consult with directors or shareholders, you can make your own decisions and develop your business exactly as you choose.
Sole Traders have Flexibility to Grow
Many who choose to run their own business for the first time do so on a part-time basis whilst remaining employed so they retain the security of a salary. They do so until they have more confidence in the business and its ability to support them financially.
As the sole owner of the business, you own all of the assets and any profit the business makes, however, you’re also responsible for all the debts and liabilities the business accrues. Having a solid grasp of how you will conduct your accounting practices requires receiving the correct and timely best practice information. Stonehouse Accountants have been serving the sole trader community for many years. You can learn from our years of experience.
Simplified Accounting for Sole Traders
The accounting process is much simpler for sole traders. You’ll still need to maintain records of invoices, expenses and submit a personal self-assessment tax return but generally this is much easier to administrate for one person then it would be for two or more.
As there’s less accounting work to undertake, your accountant may well charge you less than if you operated a limited company.
Information about sole traders is kept private, unlike that of limited companies which is made public after registration with Companies House.
This means competitors have less information on you and will therefore will find it more difficult to identify the secrets to your success.
Specialist Sole Trader Services
Often smaller businesses have the capacity to remain in tune with the needs of their clients and their ability to react quickly to those needs can be more appealing to potential customers in the local area.
Operational Flexibility – Simplified Change Management for Sole Traders
You can make your own decisions without having to consult other decision makers, this way it can be quick and simple to make changes to the business, therefore you can adapt to changing circumstances faster than a large corporation with several decision making processes in place.
With the ability to make swift decisions and implement them quickly it can be a key advantage for a sole trader in a competitive and fast moving market.
Still confused about becoming a Sole Trader?
Though it may be a little more stressful, being a sole trader comes with many advantages: independence, freedom, and the ability to develop and grow your business the way you intend to. It offers personal as well as operational flexibility, you have full control and best of all you have full profit retention.
Whether you decide to become a sole trader, LLP or Limited Company you must conduct the appropriate research to make the best decision for your start-up. For the best impartial advice for starting your business and how good accounting practice safe-guards you, contact us to discuss your plans further.