What is the difference between a limited company and a sole trader?

Modified on Sat, 18 Jul 2020 at 10:04 PM

By setting up a limited company, the members can protect their personal assets from being used to pay any company debts. On the other hand, a sole trader is personally liable for any debts the company may owe, because there is no distinction between company money and personal money.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article