Advantages And Disadvantages Of Being A Sole Trader

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Introduction A sole trader, also known as a proprietorship, is a type of business which is owned and run by an individual or one legal person Franchise Advantages & Disadvantages of Becoming a Sole Trader Advantages of Being a Sole Trader A sole trader is a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses. As stated, a person being the “exclusive owner” means they have full control of their business. No one can interfere with the decisions and the actions Johnny makes to run his business. Allowing his plans to be acted on faster and more smoothly. Second, any profit the Johnny earns, as a sole trader he has the right to retain it all. Profit is a financial gain which is found by the difference between the total amount earned and the total amount spent on buying, operating, and producing the product or service. Third, it is his choice if he wants to keep all of the business’s data private or not. Unlike in limited companies, the private information then becomes public after registering itself to the company house. And last, Johnny is closer to the consumers; he can build ties and roots which make the business appeal better in the local community. In Johnny‘s case, these are the advantages he has if he decides to keep being a sole trader. Disadvantages of Being a Sole Trader As a sole trader, Johnny has some a number of disadvantages that can affect the progress of his business. First, he has

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