This is the simplest form of business structure. It may be suitable for people seeking an uncomplicated business structure, however, a sole trader is personally liable for the debts and obligations of their business. As such, if you choose to operate your business as a sole trader, then you may be missing out on the opportunity to structure your business more effectively for liability and taxation purposes. In addition, it can be expensive to restructure a business after it has commenced operating, as this may potentially give rise to stamp duty or capital gains tax liabilities. It is therefore very important to think about the future when deciding how to structure your business.