Sole traders are personally liable
Dear Sir, — In her letter of 10th October, Diane Snelson, questions the wisdom of dealing with sole traders.
She writes of her disappointment and financial loss resulting from the closure of Town Bathrooms.
I believe the local High Street business Town Bathrooms is an incorporated limited company and not a sole trader, as her letter implies.
Unlike incorporated businesses, sole traders are personally liable for all business debts, and cannot go into administration or liquidation when in difficulty.
Sadly, in this case, she may have been better placed if she had have been dealing with a sole trader. — Yours faithfully,
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