SUBJECT – What is a sole trader?
Hi I'm Kath Appleby, Business Advisor at MWL Financial Group with over 20 years experience specialising in medical industry.
Are you in business or considering entering into business? Are you aware of the various structures available?
The most basic structure is that of a sole trader. A sole trader is someone who trades in their personal name, and will be legally responsible for all aspects of the business. While it is simple in nature, and relatively inexpensive – it does come with possible issues. It offers no asset protection and therefore personal assets of the individual are exposed, and the profits will be taxed at the individual’s tax rates – potentially up to 47% if the individual’s taxable income is above $180,000.
As you can see, careful consideration should be given to each business’s environment and its needs, and consequently an appropriate structure should be chosen to meet those needs.
For more information contact us at firstname.lastname@example.org and contact either me Kath Appleby or one of our experts will be more than happy to help.