What is the Difference Between Sole Trader and Limited Company?
In many instances the business owner starts out as the only employee and operating as a sole trader is in many instances the simpler and most practical way to start. All the profits will belong to the business owner, but also all the business debt will be a personal liability of the sole trader. A limited company is a more complex trading style, however, it does afford the protection of limiting all liabilities so that the business owner will not be personally responsibile for business debt. The set up a limited company a Company Name and the office must be registered, details of what the company will do, how it will be run and its directors must be disclaosed.
