Legal status

Are there any disadvantages in operating as a limited company?

There are a number of disadvantages in operating as a limited company. These include:

• As a company must comply with a wide range of complex and detailed legislation which is not applicable to sole traders and partnerships, this can add to the administrative and financial burden.
• Public disclosure of the company's accounts means that everyone knows how well or badly the company is doing.
• Directors of new companies still may be required to give personal guarantees to banks if seeking loans.