WHY A LIMITED COMPANY?
There are several reasons for trading as a Limited Company as opposed to being a sole trader or partnership: 1) Firstly the most obvious reason is the benefit of Limited Liability. By trading as a Limited Company, your liability is limited to the monies that you pay for your shares and nothing more. A Shareholder or Director has no responsibility for the liabilities of either the company, other Directors or other Shareholders. With regard to Partnerships, one partner may be held responsible for all of the partnerships debts, and the debts of his partners, if he is the only partner with assets to pay for them. 2) A Limited Company is a separate entity, quite distinct from its Directors, and therefore whatever may affect the company, does not affect the Directors, unlike both a partnership and sole trader, where there is no distinction between the firm and its proprietors. The Director and the Company therefore have quite separate rights and completely separate existences. 3) Registering
