Sole trader is
a business run and owned by one person. Partnership is a business owned and run
by two to twenty people. There are many
advantages of sole trader like you’re the boss, you keep all the profits,
start-up costs are low, you have maximum privacy, establishing and operating
your business is simple, its easy to change your legal structure later if
circumstance changes. In the other hand As
we know every person has their own
personality. When there are more than one person involve in a business as each one of them has their own believes it will
arise more conflicts and it may become hard to negotiate when mostly they are
in equal in the business. In partnership more paper works has to be done. In a
partnership there should be a partner’s agreements and more legal formalities
than a sole trader. When comparing to sole trader partnership has more start-up
costs. And changing legal structure will be complicated. Lack of stability even
partners have a solid exit strategy in your partnership agreement, the change
triggered by partners situation can cause instability in the business. If one
partners wish to sell the company in the future. This could present
difficulties if one partners isn’t interested in selling. This may be the some
reason that people prefer sole trader more than partnership.
