Are sole traders liable for company debts?

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Hi, I am trying to find out whether I have any sort of financial liability operating as a sole trader. I know that limited companies have got protections in place to avoid falling into debt if the company goes insolvent. Does the same sort of rule apply for sole traders? Cheers

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Sole traders have unlimited liability so they are personally liable for all business debts. Unlike the owners of a limited company, a sole trader has no financial protection in the form of limited liability. This is why a limited company structure is better for businesses that deal with higher value contracts or carry out activities that could potentially cause harm to people or property.

a year ago
 

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