If you run your own business you will normally be a sole trader, a partner in a partnership or a director of a limited company.
When dealing with business and personal debts it is important to know your business status.
This page gives a brief description of each status.
If you are unsure of which status you are, contact us for advice.
A limited company is a separate legal entity from its directors and shareholders.
It must be registered with Companies House and send them accounts each year.
You are not usually personally liable to pay back company debts, unless you have given a personal guarantee or committed a director's offence.
Read more about limited companies
This is where two or more people carry on a business with the aim of making a profit.
All partners are liable for all business debts apart from their own income tax and National Insurance contributions.
This means if you do not pay your creditors, your business and personal assets could be at risk.
Read more about partnerships