The
definition of sole trader describes a business that is owned and
controlled by one person, although the business may employ people.
Generally speaking sole traders adopt a trading name (doing business
as) and therefore the business has no separate legal existence.
As a result, the sole trader i.e. the owner, although entitled to
receive all of the Nett income, is also personally liable for the
debts of the business. This is referred to as “unlimited liability”.
In the United Kingdom there are in excess of 2 million sole traders
but because of the government incentives to incorporate, and the
risks associated with personal liability and litigation, more and
more sole traders are now deciding to establish Limited Liability
entities such as a Private Limited Company and Limited Liability
Partnerships.
The OCRA Worldwide Group is currently incorporating in excess of
10,000 companies per annum for sole traders, entrepreneurs and other
businesses in the United Kingdom, Europe, Asia, Australia and across
the Globe, so you can be safe in the knowledge that our consultants
have the pre-requisite skills and experience to address all the
issues regarding the establishment of Limited Liability entities.
For more information on how to incorporate your business please contact our London, Isle of Man, Hong Kong offices.
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