Being a sole trader is the simplest way to run a business - it does not involve paying any registration fees, keeping records and accounts is straightforward, and you get to keep all the profits. However, you are personally liable for any debts that your business runs up, which make this a risky option for businesses that need a lot of investment.
You make all the decisions on how to manage your business.
You raise money for the business out of your own assets and/or with loans from banks or other lenders.
You must keep records showing your business income and expenses.
Any profits go to you.
As you are self-employed:
See our guide on registering for Self Assessment.
As a sole trader, you are personally responsible for any debts run up by your business. This means your home or other assets may be at risk if your business runs into trouble.
For more information on starting your own business, see our guide on how to set up and register as self employed.