Benefits of Sole Trade
As a sole trader, your assets are very different to a Ltd Company. It's a more simple route and most common to trade as its not a separate legal entity.
Therefore your personal assets and business is a separate entity as a sole trade.
Simplicity & Autonomy
As a sole trader, you ca trade in very much the same way as a Ltd company. The simplicity is managing taxes and declaring your taxes, so its a little easier.
Also you run all your taxes rather than having a number of people running taxes for you.
Very similar to Ltd company, you manage and run the business.
With sole trade, there is no other directors or shareholders as you would have in a Ltd company.
Flexibility
The advantage with sole trade is that you literally manage your business by expanding or diversifying your business, therefore it's less complex running with a Ltd company.
Set-Up Your Company
With sole trade, it's more easier to to set up and more cost-efficient than a Ltd comp. Less admin costs and lower compliance costs. Great to start for small business or limited resources.
Disadvantages
One of the disadvantages is that running as a sole trade, your entirely responsible for taxes and other debts. This means your personal assets, such as your home and savings, are at risk from business-related liabilities or financial difficulties.
As a sole trade, having limited capital can be an issue in running your business. Lenders may or may not provide sufficient funding for your business. What might be a solution is to switch to a Ltd company if your business is at the right stage to transfer so you can a more fluid capital.
As a sole trade, scaling your might be an issue as it may face limitations as your in a growth stage. Again a Ltd company might be a good option to scale your business for a better way to expand.
The other aspect is when working as a sole trade it's main you as the trader, no one else. Therefore your longevity and continuity might be at risk. With having other directors and shareholders, via a Ltd company set-up, this can open a new path to your business in the future.