Sole Trader – the essentials for Business Start-ups
by Neil Butler , Solicitor, Thurles
Not every business is suited to operation within a Company.
It might be judged too costly to set up a Company ; you might want to prove the business can survive first; or you might be simply going into business for yourself in a small way with the least complication.
A Sole Trader is just that – somebody trading in business as a sole owner.
It does not mean that you cannot have employees. You can, but the ownership is held only by you personally.
You employ people to do work , pay them a wage but they have no share in the business.
A Sole Trader is personally responsible for all decisions; for all purchases and sales; for all tax liabilities; for all obligations under the Consumer Codes;
for compliance with the laws that affect the particular business.
But a Sole Trader is also entitled to all the profits and does not have to ask anyone’s permission when making any decision.
It can be a very fulfilling place to be when things go well but a lonely place if challenges become tough.
Just because operating as a Sole Trader seems simpler does not mean that you should not ensure you protect yourself as best you can.
Get good legal advice
- about Employment Law;
- about Contract Terms in your business;
- about Franchise or Distribution Agreements ;
- about the types of insurance you should take out;
- about the Policies you should have in place in the workplace;
- about Privacy Law as it affects your business and
- about methods of financing.
Check out our other Posts on Starting your own Business on www.njbutler.ie