This means that shareholders' liability is limited to paying for their shares in the company. Once shares have been paid for in full, the holder has no further liability unless personal guarantees have been given. In return for the advantage of limited liability, the company has to make available a certain amount of information about itself, its directors, its shareholders and at an early stage, very limited details of its finances. Start-up costs are minimal.
Ongoing costs are more substantial in view of tax consequences and audit requirements.
On balance it is nearly always recommended to operate through a limited company for the very obvious advantage of limiting liability. You should seriously consider preparing a Business Plan. This is essential if you are intending to borrow money from a bank, but also serves to crystallise the objectives of the business and its future course. A Business Plan is a statement of exactly what you are trying to do, what resources you need to use and how you are going to organise them. You should consider including the businesses objectives, the skills required, the product, the market and financial forecasts.