Sole Trader/partnership 32

Sole Trader/partnership 32

1. Advantages

   • Your are the boss of your business
     • Keep all the profits
     • Maximum Privacy
     • Start up cost is low
       • Business easy to set up
     • Easy to change the legal structure
     • Full control of the business

2. Disadvantages

   • You take all the responsibility of the business
     • Decisions
   • No holidays
   • Unlimited liability
     • Someone can sue them and if they don't have enough money there personal stuff will be sold like house,car etc
   • Work for long hours
     • No time off when ill

3. PartnerShip

   • Advantages
     • Shared responsibility
       • More help with setting up from other person
         • Easy to set up and costs are low
     • Taking Decisions
     • Easy to change legal structure
   • Disadvantages
     • Make decisions
       • Disagreements
       • Consult your partner
     • Have to share profits with the other person
     • Share the liability
     • They have to agree with the things that are being done.
     • Can't become a large business
     • If someone from the business dies or retires the business will end.
   • Two or more people setting up a business