What are the advantages and disadvantages of a priviate limited company (LTD)?

Question

What are the advantages and disadvantages of a priviate limited company (LTD)?

Answer 1

there are mostly advantages of a ltd company, if you go bankrupt your assets like your house/car can`t be taken from you only what is concerning the business, you can also become a director of your own company and pay yourself a dividend every week and you can go in the books as taking a weekly wage as long as you pay tax and nat ins and it goes through the wage book if you have one, there are no disadvantages we have found yet, it`s the best thing we have done

Answer 2

adv - limited liability (if you go bankrupt personal assets are protected), ability o raise funds through shares, ownership and control are closely linked, small in comparison to a public company and therefore less barriers to communication etc - decisions often made quicker,

disadv - private - ability to raise share capital is limited compared to a public company (cannot trade on the stock exchange)

Answer 3

It limits the shareholders liabilities to loss, but  it takes away their freedom to take money from the till.

Answer 4

If you own a private limited company, and it goes broke, the bank can't take any of your personal possessions to cover the costs - eg ur 08 Mercedes Benz.