Sole Traders & Partnerships

Choosing the right legal structure is one of the most important decisions an entrepreneur makes. This lesson covers the two simplest forms of business ownership — sole traders and partnerships — explaining their features, advantages, and disadvantages.

---

Forms of Business Ownership

There are several legal structures a business can take. The choice depends on factors such as the size of the business, how much control the owner wants, liability preferences, and how the business will be financed.

The main forms of business ownership at GCSE level are:

1. Sole trader
2. Partnership
3. Private limited company (Ltd)
4. Public limited company (PLC)
5. Franchise

This lesson focuses on sole traders and partnerships. Limited companies and franchises are covered in the next lesson.

---

Sole Traders

A sole trader is a business owned and run by one person. It is the simplest and most common form of business ownership in the UK — there are over 3.5 million sole traders in the UK.

Key Features