It is important to understand that your Limited Company is a separate entity from you personally.
You might be the only shareholder of the Company and the only Director, but it is still separate from you personally.
This is one of the key benefits of running as a Limited Company - you have no personal liability as long as:
- You don't continue trading if the company becomes insolvent (doesn't have the cash to meet it's liabilities)
- You don't do anything illegal
- The decisions you make as a Director are in the best interests of all the shareholders
- You don't declare dividends when there aren't reserves to justify them
However you also need to have a structured plan as to how to extract money from your company, such as through dividends and salary.
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