Question regarding limited liability

How is the risk to a company with limited liability minimised in comparison to a sole trader?

Any help would be appreciated.

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An example would be, If your company fails as a sole trader, you are personally liable to pay the debts.

If the same thing happened as a limited company, you can't be pursued individually, only the assets of the company can be pursued.

That's right I believe...

Not sure if that makes sense?

You also get much better tax breaks as a ltd co

cheers for the information.

cheers for the information.

No worries

I'm guessing you're taking business studies a-level then, there's other things than limited liability, it allows investments to be made but only from people within the company an ltd is not allowed on the stock exchange like a plc. The disadvantage is that the owner will have less control over the company and therefore it's less 'manoeuvrable' than a sole trader. They also can be harder to set up and can cost legal fees and harder legislation than a sole trader. Most companies become plc's when they reach a certain size but others like Sony remain ltd's for the added control. They can also keep their accounts private to stop rival companies gaining the upper hand and don't have to listen to the demands of shareholders. That's pretty much all I can think of, generally they do tend to be the better companies aswell

I'm guessing you're taking business studies a-level then, there's other things than limited liability, it allows investments to be made but only from people within the company an ltd is not allowed on the stock exchange like a plc. The disadvantage is that the owner will have less control over the company and therefore it's less 'manoeuvrable' than a sole trader. They also can be harder to set up and can cost legal fees and harder legislation than a sole trader. Most companies become plc's when they reach a certain size but others like Sony remain ltd's for the added control. They can also keep their accounts private to stop rival companies gaining the upper hand and don't have to listen to the demands of shareholders. That's pretty much all I can think of, generally they do tend to be the better companies aswell

Computer Science at university but business module for web designers so it has to be quite in depth explanation. Cheers

Right this is the low down

LLP or Limited liability partnerships have the same trading entity as a Limited Company for all intents and purposes ie the busines is an entity of its own and if it goes bust you dont lose your house

How many usernames you using?

If you asked me 10 years ago I could have told you
My brain has lost that info due I alcohol abuse

2

why?

How many usernames you using?

If you asked me 10 years ago I could have told you
My brain has lost that info due I alcohol abuse

2

why?

Why Not? Yoko's