Community · Legal Question

What is the difference between a sole trader and a company?

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Q

How do sole traders and companies differ in terms of legal structure and obligations?

Indiana

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2 answers from the community

A

A sole trader is an individual running a business, while a company is a separate legal entity owned by shareholders.

1 year ago

A

Sole traders have unlimited liability, whereas companies provide limited liability protection to their owners.

1 year ago