A sole proprietorship or sole trader is the most common and the simplest form of business. It is a business which one goes into with family members and there are various advantages of sole proprietorship that one should look out for when considering this type of business.
One of the most popular advantages of starting a sole trader is that it is easy to start. One can therefore start by leasing or buying the required equipment to start this form of business. Mistakes are fewer in this form of business since the owner has to be very careful as he or she is solely liable for any mistake.
Another reward of becoming a sole trader is the pride that one gets from owning such a business. This is especially so in the long-run when the profits are increasing and the business is expanding. As the business owner, you can have a legacy to leave behind for future generations when he or she dies. Unlike in partnerships where in some cases, the business may not reconsider a family member of the deceased taking up his place in case of death.
If you want to operate your business as a sole trader in Australia, then you should check out this helpful article from Australian Taxation Office’s Official Website. It can help you understand better about sole proprietorship.
Read the full article here: https://www.ato.gov.au/Business/Starting-your-own-business/Choosing-your-business-structure/Sole-trader