Who is a Soletrader?
A Soletrader is a person that sets a business in its own name, Soletrader have limited liabitily as there is no distinction between the business and themself. Limited liability means that if the business can not afford its debts, then the soletrader will be liable for the business debts ith its own patrimony e.g. house car, savings etc.
In Uk this is the most common form of business (2/3) as it is very easy to set up and there are no legal documents that need to be completed e.g, Profit and Loss Account, Balance Sheet, or annual meeting that need to be attended by the the owners of the business eg. Annual General Meeting in Limited Companies.
An example of Soletrader could be an Off Licence Shop near the Corner of our High Streets, newsagents and Hairdressers and Barbers. Barbers and Hairdressers could also work in Partnership which is different from being a Soletrader.
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