Sole Traders

This is probably one of the most common trading platforms for most new businesses.

Commonly called self employed, this trading platform offers no protection from creditors or economic downturns.  The Self-employed trader is personally liable for all their business debts.

One man / woman working on his/her own, typically personal assistants, plumbers, electricians, all the trade workers, sole traders, often a lot of the health benefit people like massage therapist, nutritionists and maybe a whole host of one man management consultants, are using this type of alternative.

It has unlimited risk as its downside which means if something goes wrong or if somebody sues you, your personal assets are up for grabs.  I  don't like that very much. If you have built up your assets over your lifetime, you probably want to protect them. This is probably not the way you want to go.

If you do go down this route, please make sure you are adequately insured for professional indemnity and public liability.  If you have employees, also make sure you are covered for employers’ liability.

The benefits are that it has a low cost structure. It can be set up for free or at low cost, and it is easy to start.

You have to inform Inland Revenue within 3 months of the business starting so you won't be charged a £100 penalty.

You will also need to register for National Insurance as a self employed trader.  Registration forms can be found online on the HMRC site (www.hmrc.gov.uk).

Please call us for a free initial consultation on 020 8241 3000 or email: gds@gordonsknight.co.uk.