Sole traders are self-employed people who own their entire business and run it as an individual. In other words, there’s no legal distinction between you and your business, which is why it’s often said that sole traders are their business.

Do you need to register your business as a sole trader?

As a sole trader, you don’t need to register your business with Companies House. This is because it isn’t a separate legal entity, in the way that a limited company is. As a result, a benefit of working as a sole trader is you can start working right away.

Can a sole trader be a public limited company?

Owners can opt to run their businesses as sole traders, partnerships or private limited companies. As the business expands it may decide to become a public limited company or to offer franchises.

When do sole proprietors need to choose a trade name?

What’s in a Name? Sole proprietors are under no obligation to select a trade name for their business, when they embark on setting up the enterprise. However, if the business owner chooses to operate the business under a fictitious or assumed business name, she has to register that business name with the clerk in her county office.

A sole trader is a self-employed individual who owns and runs their own business as an individual and, as their business isn’t a separate legal entity to its owner, a sole trader is their business. Being a sole trader means you have complete control over your business, all its assets and any profits after tax.

Do you need an accountant to be a sole trader?

Most people starting in business will begin as a sole trader and then incorporate into a limited company once they have reached a certain size. However, this decision is as unique as you are, so you are best to speak to an accountant who can tell you what would be best suited for you and your business.

Do you have to register your business name as a sole trader?

You can trade under your own name, or you can choose another name for your business. You do not need to register your name. You must include your name and business name (if you have one) on official paperwork, for example invoices and letters.

Do you have to register for VAT if you are sole trader?

To pay tax, you’ll need to register for Self Assessment. You may also need to register for VAT. Is this page useful? Don’t include personal or financial information like your National Insurance number or credit card details.