if you're looking to start a business one of the many things you'll need to do is choose a business structure and one structure that may suit you is called a sole Trader but what exactly is a sole Trader and what are the pros and cons of being a sole Trader well a sole Trader is a self-employed person who runs their own business for example a freelance graphic designer who operates as a sole Trader instead of a company partnership or other legal structure while a sell Trader is often the only person involved in the business they can employ other people if they want to so you can use the sole Trader structure even if you won't be the only person working in your business so why choose to be a sole Trader one of the main pros of being a sole Trader is that there are no compulsory costs to get started while you may choose to spend money on things like insurance and a business name you won't need to spend money on costs such as setting up a company or drafting a legal partnership agreement this is why the sole Trader structure is popular with startups home-based businesses and side hustles it's also popular with small business owners like electricians bookkeepers and personal trainers some of the advantages of being a sole Trader are it's the simplest and cheapest business structure to set up as the sole owner you control and manage the business the way you want to the money you earn belongs to you not a company there are minimal financial reporting requirements you can employ others and it's easy to restructure to a company or Partnership if your business grows while some of the main cons of being a sole Trader include you are legally responsible for all aspects of your business including any debts or losses liability is unlimited so your personal assets such as your home could be at risk you will most likely need to get insurance to offset your risks which could be expensive you are personally liable to pay tax on all income and you don't get paid leave or other employee benefits so those are the main advantages and disadvantages of choosing the sole Trader structure for your business before you decide which structure to use for your business check out our channel for more videos on companies Partnerships and lots of other small business finance topics