Questions and Answers
What Does "Limited Liability" Mean?
I have been told if I set up a company I will have “Limited Liability”, what does this actually mean?
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Limited Companies
If you operate as a sole trader your personal assets may be at risk in the event of a legal action from a creditor or third party.
However, if you are a limited liability company you and your business are separate legal entities and therefore your personal assets should not be at risk. If your limited company is wound up/liquidated you should have no personal liabilities.
Liability is not the only factor you should consider in how you trade. Read more about the advantages and disadvantages of incorporating your business here
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Or contact usFirst published 1 May 2015 | Last updated 7 May 2025
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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