The Legal Status of a Business.

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The Legal Status of a Business

When setting up my business there are many possibilities of what the business's legal status could be.

One of the possibilities is to become a sole trader. Being a sole trader has many advantages:

* The main advantage is that you have complete control of your business. This means that you can run the business just the way you want.

* Another advantage is that this type of business is very easy to set up. It requires no long complicated documents to fill in so it is relatively easy to set up.

* An advantage that would appeal to most sole proprietors is the fact that the sole trader gets to keep all of the profits that the business makes. This would appeal to most people, as the reason that people go into business is to try and make money.

There are many disadvantages that would put people off being a sole proprietor:

* The main disadvantage of being a sole proprietor is Unlimited Liability. Unlimited Liability. This means that the owner of the business is personally responsible for all of the debts