Building contractor wearing safety clothing holding some blueprints, isolated on a white background.

Sole Trader

A sole trader is a trade that is owned and controlled by one person. This is very attractive for those who wish to retain ownership of the business. A "sole trader" is described as a person trading under his / her own name, or a registered business name.

Many sole traders decide to operate under their own name and do so without any problem. However, if you use a name other than your surname, you must register the name as a Business Name in Companies Registration Office.

Advantages of the Sole Trader

  • The sole trader is not required to file accounts, which would be available for inspection by the public.
  • Fewer legal formalities compared to other structures.
  • The income from the business is personal income and expenses which are incurred "wholly and exclusively" in the course of the trade are allowable deductions.
  • Closure of the business requires less formality.

Disadvantages of the Sole Trader

  • The owner is personally liable for all debts of the business.
  • Raising capital can be more difficult.
  • The life of the business depends entirely on the owner.

Definition of a Sole Trader with a list of advantages and disatvantages. Read More

Definition of a Limited Company, showing the advantages and disadvantages. Read More

Explanation of what Business Transactions are and what they consist of. Read More

Outline of what is involved in an audit. Read More

Details of what constitues the Annual Return. Read More

How to avail of the Audit Exemption. Read More