What is a Sole Trader?
A sole trader is an individual running a business. It is the simplest and cheapest business structure. If you operate your business as a sole trader, you are the only owner and you control and manage the business. You are legally responsible for all aspects of the business. Debts and losses can’t be shared with other individuals. You may employ workers in your business, and if you do so; you are will be liable for their superannuation.
Sole Traders do not need to lodge a dedicated seperate tax return each year. Instead, a business schedule must be included within the personal tax return. This aspect is a common source of confusion among new sole traders. Your sole trader business schedule is essentially a list of your total business income for the financial year along with your expenses by category.
How we can help
Freshwater Taxation assist hundreds of sole traders each year. Regardless of if you are just starting out or have been established for many years, we guarantee to provide you with an extremely thorough service. If you are starting out as a sole trader and unsure of the next steps, head over to our business setups page and download our free step-by-step guide.
We don’t just crunch the numbers! We also conduct a thorough review of your situation in order to ensure that you are running in the most suitable business structure to suit your overall circumstances.