What is a Company
A company a legal structure a business owner can use to run their business through. It is the one legal entity that has more to do with complying with regulations and other aspects of the law than other business structures.

It is a formal and separate legal entity in its own right, separate from its shareholders (or owners). It is formed when a group of people exchange money and/or property for shares in an enterprise registered under the Companies Act.

This is probably the most common form of business structure because it provides some advantages that one should look at when going into business. The shareholders are not the business but they have shares in the business. The owners or shareholders in the company are merely holding an interest in the business.

This is also possibly the best entity to use if a business owner is serious about separating the family assets from the business. If the company fails, because it is a separate person it cannot call on the assets owned by the owners or their families.

What is a Limited Liability Company?
A limited liability company is a company which has limited liability. The limited liability entity was created to give protection from liability to owners of a business.

A limited liability company is a separate legal entity, or legal person, in the eyes of the law.

The benefit of a limited liability company is that the shareholders in the business do not have to pay any more than they owe on their unpaid shares (if they are unpaid) in the event of the company failing.

This means that the personal liability of the people involved in the business is limited to the extent granted by law. In the case of shareholders, their liability is limited to the amount still unpaid on the shares they have taken in the company. In the case of directors and officers of the company, their liability is limited to the extent where there is no liability provided they have complied with all the requirements set down under company law, as to their duties and responsibilities.

The limited company is treated as a person in law, so it is responsible for its own debts.

Creditors can claim the assets owned by the limited liability company, but not the assets of the officers of the company, nor its shareholders. Only the property of the limited liability company can be used to clear the debts if it becomes insolvent and eventually wound up.

The officers and shareholders of the company, employees and investors in the company cannot be made to contribute to the debts of the company. This ensures that they cannot be made personally bankrupt because the company fails.