ABSTRACT
The first decision usually required to be made from a taxation point of view is which trading entity to adopt. The options available are set out below.
Sole trader
A sole trader is a person who is in business on his own account. There is no statutory requirement to produce accounts nor is there a necessity to have them audited. A sole trader may, however, be required to register for PAVE and VAT purposes and maintain records so that Income Tax and VAT returns can be made. A sole trader is personally liable for all the liabilities of his business.
