Penny Lane Accountants in Chester offers a number of accountancy services to assist you as a sole trader.
Although being a sole trader is one of the simplest ways to get started in business, there are still many complex processes that need to be adhered to.
If you are already trading or considering starting a business as a sole trader Penny Lane Accountants in Chester an help you with accountancy and tax advice services.
Sole trader accounts will be required for tax purposes as well as being used for decision making and management purposes. Accounts will also be needed for dealings with external bodies such as banks, government grant providers, etc.
The main advantages of setting up as a sole trader are:
- You have total control over the business. Decisions can be made quickly and easily, from accountancy and financial decisions to general business decisions.
- Easy to change to another trading identity. It is relatively easy to change your trading identity from that of a sole trader to a limited company.
- As the owner of the business, all the profit belongs to you.
- When you run an unincorporated business your accounts are not made available to the public therefore competitors cannot see what you are earning hence they will know less about how your business works and how it succeeds.
The main disadvantages of being a sole trader are:
- You are personally liable and accountable for all your businesses debts – Should your business fail you could end up losing your personal assets such as your home, car, etc.
- When you run a small unincorporated business, banks will not lend you large sums and you may find raising finance for the business is very difficult unless you are prepared to change your ownership status.
- Smaller businesses often find that they cannot buy supplies in bulk and do not enjoy the same discounts as larger businesses.
