Diego Santos

A sole trader is a great advantage depending on the type of business and hopes you got for your

business. If is a small business and its able to maintain itself and provide profit then you better option to

stay as a sole trader. This way you get to have all the profit and continue to have a steady income for a

long period of time, provided your costumers are loyal and constant.

If you decide to turn into a private limited company then you will risk your business going into an

economic downfall. People who tend to go to small business enjoy the aspect of a small business and

personalized service; these are things that a private limited company cannot insure this. A private

limited company is more based in efficiency rather than that kind of service. It’s a risk to take this option

under these conditions and all of this taking into account that know your personal profit will be smaller

at the start because you will have to pay more workers and stake holders.

On the other hand if your business does fit the criteria to expand and not hurt your business then a

private limited company is a great idea. For instance, “Los Hotdogs de la Gonzales” was a company that

started small with a food cart on the street, after expanding the business benefited and it now owns

over 20 fast food stations across Quito. The private limited company in this case benefits you because

although you do have to pay more workers and share holders, your profit is much bigger than before.

My advice to you depends of on type of business you have, base yourself on what your costumers see in

your business and depending on that take your decision.