PDA

View Full Version : Liability


the_rossi
16-11-2003, 07:29 PM
We are looking at setting up a business selling bridal wear. We need to work out whether we need to set up a limited company or not. I believe if we set up a limited company then we would have 'limited' liability in the event of financial difficulties. We are trying to determine exactly what limited liability means. For example, if a fault developed with a wedding dress on a customers wedding day and they decided to sue us then would they only be able to sue for the value of the product (i.e. the dress)? Is this the protection a limited company offers? I.e. if we set up a business as a sole trader or a partnership and the same problem occurred, could we be sued for an 'unlimited' amount?
Thanks
Ross.

Statler
17-11-2003, 10:26 AM
Hi,

Limited Liability means that if the company goes bust, your losses are limited to the value of the share capital introduced. For day-to-day issues like the one you described, you would want some kind of indemnity insurance.

You can find out more about limited liability companies/partnerships on the Companies House website:

http://ws6.companieshouse.gov.uk/faq/llps.html

If you register online with Shell LiveWIRE at www.shell-livewire.org, you will be posted a factsheet dealing with your particular business idea (Bridal Shop), plus you will also gain access to all the information within the Be Your Own Boss section of the site.

To register at www.shell-livewire.org, choose 'Click to Register' below the briefcase on the left-hand side of the homepage.

Lee