A sole trader is a type of business structure where an individual operates their own business independently. This means that the owner is solely responsible for all aspects of the business, including profits, losses, and liabilities. Sole traders often have more control over their operations and decision-making compared to other business structures. One of the main advantages of being a sole trader is the simplicity of setup and management. There are fewer regulatory requirements, making it easier for individuals to start their own business. However, sole traders also face unlimited liability, meaning their personal assets could be at risk if the business incurs debts.