Marie Deutsch is a fashion designer who, after graduation with a degree in fashion, obtained a very good job as designer in a lingerie company. She has decided that she would like to leave her job and set up in business with an old friend from college who also trained as a designer. Marie has heard that it is more sensible to set up as a limited company because it would mean that she and her friend would not be personally liable for the debts of the business.

However, she says she is sure that there must be some strings attached, and would like you to tell her about any disadvantages in limited company status.