This is something else which has come across in my decisions about what to do after University is potentially looking to set up my own business and run as a sole trader. 

There are a few things that I need to remember if I decide to go down this route:

- I am responsible for any losses the business makes 

- I am responsible for any of my business' bills

- I am responsible for keeping an accurate record of the sales and spending that the business makes 

Like with every business currently trading, I would need to send a yearly Tax Return to Her Majesty's Customs and Excise (HMRC) 

Advantages:

+ A good point about being a sole trader is that there is less admin work, it is easier to set up than a Limited Company (Ltd.) 

+ I also have to keep a record of all expenses paid for, and by doing this I would be organised and almost submitting a Self Assessment (VAT Return)

+ I would have fewer costs, but I feel I would want to hire an accountant quite early on just to 'help me' (HELP ME WRITE THAT BIT)

+ As a sole trader I would have complete and absolute control of the business, it would be me who would make all the business decisions, there are no shareholders to consider before any final decisions are made

Disadvantage:

- The main disadvantage is that there is unlimited liability, which essentially means if the company ever made losses or went 'into the red', then personal possessions are up for grabs by creditors 

Ultimately, it is up to me at the end of the day which way I decide to setup my business as a sole trader or a limited company. I feel that life as a sole trader would be better for someone who is setting up their first business, whereas a limited company is more for someone who has experience running their own business.