What best defines a Sole Trader?

A Sole Trader is defined as a person who runs a business as an individual, meaning that they are the sole owner and operator of the business. This structure allows for complete control over the business, along with all of its profits and liabilities. This individual is responsible for making all business decisions and does not have to share profits with partners or other stakeholders, which is a key characteristic of this business model.

Operating as a Sole Trader often involves registering for tax purposes and ensuring compliance with relevant regulations, but does not require the same formalities as other business structures, such as corporations or partnerships. This flexibility makes it an attractive option for small businesses and freelancers.

In contrast, working as part of a team would imply a collaborative environment often found in partnerships or larger companies, while operating under a company name with multiple employees refers to more complex business structures such as corporations. Being solely responsible for managing a corporation implies the existence of shareholders and a board, which is also inconsistent with the Sole Trader model.