What is the difference between a sole trader and a traditional partnership?
A sole trader owns and runs a business in his or her sole name and is personally liable for the business. This means he or she can be sued personally for the actions or omissions of the business and will be personally liable for the debts of the business. A partnership is owned by two or more people, each of whom will be personally liable for the business. Each partner can be sued individually for the whole of the business’ liability, but that partner can, in turn, claim contributions from the other partners.
