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Robin Cornelius wrote: > > Is there > really any difference between a sole traders "business" and a > unlimited company? Yes. A company can be formed with unlimited liability, and can have multiple people owning it. It is quite unusual, but it is quite distinct from a sole trader (which effectively is one person trading with unlimited liability). A company with unlimited liability is pretty much the same as a partnership as regards liability. If you aren't independently wealthy, or working in specific business areas, companies with unlimited liability are unlikely to be of much relevance to you. Historically private banks, and insurance backers (like Lloyds names) carried unlimited liability. So that when the bank was named after a famously rich family, members of that family were often jointly and personally liable should the bank ever be unable to pay you back the money you invested with them. These days, since there are less requirements for unlimited liability, most owners choose not to have such liability if they don't have to (would you want to lose your personal fortune if your employees mess up?). Part of the erosion of responsibility, as our financial assets are placed in the hands of what H.G. Wells called the "irresponsibly wealthy".
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