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  • HHH Partners,accountants,business,taxation,financial planning,wealth creation,Emerald, QLD
  • HHH Partners,accountants,business,taxation,financial planning,wealth creation,Emerald, QLD
  • HHH Partners,accountants,business,taxation,financial planning,wealth creation,Emerald, QLD
  • HHH Partners,accountants,business,taxation,financial planning,wealth creation,Emerald, QLD
  • HHH Partners,accountants,business,taxation,financial planning,wealth creation,Emerald, QLD
  • HHH Partners,accountants,business,taxation,financial planning,wealth creation,Emerald, QLD
  • HHH Partners,accountants,business,taxation,financial planning,wealth creation,Emerald, QLD
  • HHH Partners,accountants,business,taxation,financial planning,wealth creation,Emerald, QLD
  • HHH Partners,accountants,business,taxation,financial planning,wealth creation,Emerald, QLD
  • HHH Partners,accountants,business,taxation,financial planning,wealth creation,Emerald, QLD

Sole Traders

What is a sole trader?

This is the most straightforward structure for a business. Basically it means the business decisions are being made by one person. Of course, it doesn't necessarily mean that the business has only one worker. The sole trader can employ others to do any or all of the work in the business. This type of structure is ideal if the business is not complicated, especially if it does not require a great deal of outside capital.

What are the advantages?

  • There isn't much paperwork in establishing this type of structure.
  • You may not have to register a business name.
  • There are less stringent reporting obligations compared with other structures.
  • You may be able to deduct tax losses from personal income.
  • You are entitled to profits and the ownership of assets.
  • It's relatively straightforward to wind up.

What are the disadvantages?

  • You are personally liable for all debts.
  • Personal property may be vulnerable for debts and other business liabilities.
  • Large sums of capital are less likely to be available to a sole trader, and you may have to rely more on overdrafts and personal savings.
  • You may require enormous investments of time without the normal employee recreation leave and other benefits.
  • There may be issues of continuity of business in the event of death or illness.

Tax Treatment

A sole trader pays tax in their own right, as part of their personal income tax return at the personal rate of income tax.

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Disclaimer: This fact sheet is intended to be general information. It is not a substitute for legal or other professional advice. HHH Partners does not accept responsibility for loss to any person, who either acts or does not act because of this fact sheet.
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