Business

Sole trader

-one person owns and runs it

-owner provides all finances

-owner makes all decisions

-owner has all responsibility

-easy to establish only requires only requires business name to be registered with the ASIC

-unlimited liability

unlimited liability

not regarded as a separate legal entity, The owner is personally responsible for any business debts, and may involve the owner having to sell personal assets, such as property or motor vehicles, to pay for the liabilities of the business.

Advantages of a sole trader

-low cost of entry

-complete control

-less costly to operate

-no partner disputes

Disadvantages of a sole trader

-unlimited liability

-end of business when owner dies

-burden of management

-need to perform wide variety of tasks

-difficult to operate if sick