PIP IT UP COMPANY SERVICES UK Limited Company Formation If you are a sole trader, You are personally liable for any money the business owes. Debts can be paid with your house, car, or any of your other personal possessions. Protect your assets by forming a "Limited company" so called because it limits the owners personal liabilities. The company is treated as a seperate legal "entity" it is the company that buys and sells, and not, you, the owner.