Thinking of running a Sole Trader business? Nasa can
help...
If you are new to contracting and are looking into the sole
trader business there are a few things you should be mindful
of. Sole Trader businesses are extremely easy to set up
however they can be more difficult to stay afloat.
There is no financial separation between the owner personally
and the business so if the business has any debts, you will
ultimately be personally liable for them. This is one of the
biggest worries with sole trader businesses.
However, this being said, there are negatives to every route you
look at and so we should always take the positives into account
too. Being a sole trader business is the easiest and simplest
way of contracting. You just need to let HMRC know your
intentions and away you go. As a sole trader, the administration is
minimal too which is a bonus. You don't have to complete
companies house forms or deal with any of the limited company
financial and accounting issues (hurray!).
So we've got the main strengths and weakness out of the way but
now a precaution - despite that the fact that the overall
administration burden is less with a sole trader business, we would
stress how important it is to get some good financial and
accountancy advice if this route appeals to you. Your sole
trader business may not be as complex as that of a limited company
but as you will remain personally liable for your business, you
should ensure that it isn't going to fail financially. Take
care of your business and it will take care of you.
At Nasa Consulting, we offer specialist sole trader business
accountancy that is designed around the needs of a sole trader,
ensuring that you remain on the right path, financially.
For more information about our sole trader business accountancy,
please contact us on 0117 904 7755 or at info@nasaconsulting.com
for more information.