Sole Proprietor - is it still legal?

[Newretailer]

Apologies, I tried to find the answer in previous threads, but couldn't find anything definitive.

Is it still legal to trade as a sole proprietor? I cannot see how it can be done away with completely.

[Newretailer]

OK, a "similar threads" popped up and it looks like it is still legal, but I have to register the name. My accountant insists that it is better to trade as a sole proprietor even though I have a registered CC. I am currently registered for turnover tax, but will have to deregister next year unless they raise the ceiling again.

For TT, it is so simple to complete the tax returns as sole proprietor and it is certainly cheaper. I don't want to complicate things if I don't have to.

[BusFact]

Yes, a sole proprietor is still legal. All it means is that you trade as yourself. There is no need to create a new entity such as a company. Basically, you are the business. I can't see how this could ever become "ilegal".

It is the simplest and cheapest form of running a business. Its drawbacks are:

- that you can't share the ownership of the business with others if it grows.
- that all your personal assets are at risk if your business fails.
- that is can be complicated to sell the business in the future as its mixed with all your personal items.
- there is no continuity with the business as if you die, the business ceases to exist.
- some corporate customers only like to deal with companies (I still don't know why).

[Newretailer]

Thank you. You raise some good points. The continuity of the business after death would be a problem.

One of the other problems I find is your last point: the shopping centre where I want to sign a lease, do not want to do it for a sole proprietor. Do they even have a right to refuse it?

[BusFact]

They can probably sign up whoever they want as a tennant and similarly refuse whoever they want. I just don't understand why they won't deal with a sole prop.

[Dave A]

I just don't understand why they won't deal with a sole prop.

Especially as most often they want to bind the owners of the company into a suretyship anyway

[BusFact]

Especially as most often they want to bind the owners of the company into a suretyship anyway

Exactly. Very confusing.