A sole trader also known as sole proprietorship is an unincorporated business has just a single owner. Sole trader businesses do not have legal identity. A sole trader has complete control over their assets and profits after taxes.
👩🔧 Can I start my business as a sole trader?
Yes, you can operate a business as a sole trader without registering a company.
Sole trading businesses are easy to establish and close, as there is no government involvement. Many sole traders do business under their own names. Examples of these types of businesses are individuals, contractors, consultants and trades people such as plumbers, electrician, carpet layer etc.
Sole traders has unlimited liability, as the debts of the business are the debts of owner. If the creditors cannot be paid, then sole trader's personal assets would at risk for paying off these debts.
While we have made every attempt ensure that the information on this website is accurate, it should NOT act as a substitute for professional advice. Do not act solely based on this information alone. Always consult professional such as a tax agent and or tax advisor of Tax Matterz based in Auckland, New Zealand (formerly Tax Matters) as each situation and circumstance may vary. Read our disclaimer here.