Given the sole trader structure is relatively easy and inexpensive to set up, it's a popular choice for many Australians. A sole trader is legally responsible for all aspects of the business including any debts and losses.
Liquidation and voluntary administration are for businesses trading through a company structure (incorporated companies and trust structures). If you are trading as a sole trader and have financial issues in the business, then your debts can be dealt with through bankruptcy or other debt solutions mechanism. Go to our bankruptcy page to learn more.