Who Must Pay Zakat in the Case of a Sole Trader?

A sole trader is an individual who independently owns and operates a business without forming a company or partnership. 

This business structure means:

• The owner is solely responsible for all profits and losses.
• All assets and liabilities belong directly to the individual.
• Employees can be hired without changing the business structure.

Zakat's Responsibility for a Sole Trader

Since there is no legal distinction between the individual and the business, the owner is fully responsible for paying Zakat. 

The key considerations include:

• Zakatable Assets: The trader must calculate Zakat on all eligible assets, including:
  
  
• Cash in hand and bank accounts
• Business stock and inventory
• Accounts receivable (money owed by customers)
• Liabilities Deduction: Before calculating Zakat, immediate liabilities, such as debts payable within the Zakat year, can be deducted from the total assets.
  
  
• Calculation & Payment:
  
  
• Zakat is calculated at 2.5% of the net Zakatable assets.
• It must be paid after a full lunar year has passed and the Nisab (minimum threshold) has been met.

As the sole decision-maker and beneficiary, the trader is responsible for ensuring that Zakat is properly calculated and given. 

And Allah knows best.