The sole trader is the simplest form of business structure and least expensive to establish. Under a sole trader model the owner has full control of the business, its assets and profits but is also personally liable for performing the obligations of the business, including payment of all debts of the business. The owner of the business may deduct losses against personal assessable income, but all profits are taxed at the personal tax rate. Often the business is dependent on the personal skill and experience of the sole trader.

See Sole trader.