What is a sole trader?
A sole trader is one type of business organization. Or I would
say a sole trader is among the many types of organization that
exist in a business environment. If you are a sole trader, it means
that you own the business, and any profits from the business
belongs to you. It's important to know that there are other types
of business organizations like partnership or limited companies. A
partnership is where you and another partner owns the business. (
it may not necessarily be 50% each, it depends on the agreement of
each partner ). Limited companies on the other hand, are companies
that can offer shares to raise capital. Although this is
complicated, you need to understand that while sole trader can earn
all the profits, it will face difficulties in raising funds for
expansion, that's the reason limited companies are formed, they can
raise funds from the public.