Look at Delfina`s blog
Disadvantages of sole trader
-if derek wants to share his ideas with someone else he won`t be able to do it.
-it has unlimited liabilities
-sources of finance will be limited, few
Advantages of private limited company
-more legal regulations and paperwork compared with partnership but less than for public limited companies
-continuity: the shareholders have the possibility to sell shares whenever they want regardless the creation of new paper worl. The only condition is that the other shareholders will have to agree.
-limited liabilities: in case derek`s company fails, it will not have to pay the company`s debts with his own assets just with the ones of the company
Disadvantages of private limited company