When web designers take their knowledge and skills and use them to start a business such as a web design agency, there are numerous legal obligations to be met and decisions to be made. One of the first and most important is what legal business structure their web design agency is to have. There are three main options, which are sole trader, partnership, and company.
Unless they are starting the business with another person, a partnership will not apply, and for many web designers setting up a company is often not necessary at this stage. That leaves us with sole trader, or sole proprietor, as some call it. Being a sole trader is a hugely popular way for web designers to establish a business, but, as with anything business-related, it does have rules, pros, and cons, so let us look at them in some detail.
What Being A Sole Trader Means
First, being a sole trader is a perfectly legitimate way to operate a business, and is the choice of millions of business owners. In effect, it is you, the individual, which takes on the responsibilities and obligations of your business. As the business is yours, you have complete control and are not answerable to directors or shareholders when making decisions concerning the business.