Sole Trader

Sole trader

Operating as a sole trader is the simplest of business structuresThere are many people who do so, notably farmers. 

If you choose to operate as a sole trader here are some of the main advantages and disadvantages.

  • you can take funds out of, or put then into the business, with no restrictions
  • but you have no limited liability – all claims or debts of the business are yours
  • you have sole control and no minutes of business decisions required
  • but you are exposed to tax rate at top marginal rate plus Medicare levy and surcharge plus any superannuation surcharge
  • you can use tax losses as they arise
  • but tax losses are only usable by you as proprietor
  • you claim business deductions directly as well as any CGT discount on capital gains

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