How to set up and run a small business

Leaderboard – News

Leaderboard – Business Plans

Leaderboard – Start Ups

Leaderboard – Company (Ltd)

Leaderboard – Company (S/E)

Leaderboard – Run – Freelancers

Leaderboard – Run – Legal

Leaderboard – Run – People

Leaderboard – Run – Premises

Leaderboard – Run – Sales

Leaderboard – Run – Technology

Leaderboard – Tax

Leaderboard – Banking

Leaderboard – Finance

Leaderboard – Insurance

You are here: Home » Archives for limited liability

limited liability

Aside from the sole trader route, the limited liability company is the most popular business structure in the UK.

With a limited company, the liability of company directors is ‘limited’ in that the company’s finances are separate from the personal finances of the business owner. This is not the case for those who run their business as a sole trader (self employed).

Limited company shareholders are not responsible for any debts run up by the business, although banks may ask company directors to provide loan guarantees for commercial loans or credit taken out in the company’s name.
Continue…

One of the great advantages of trading through a company is to take advantage of ‘limited liability’. This means that, unless you have personally guaranteed a liability – for example to a bank or landlord – then as a director you are not responsible for the company’s debts if it goes bust.
Continue…