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