If you're worried about liability, you could also consider operating as a limited company. In the UK, limited companies are treated as a separate "legal person" to their owners. This means that if I want to sue the business, I sue the company, not the individuals that own or run it. The owner's liability is limited to the amount unpaid on their shares (so if you own 10 shares of £1 each, your personal liability is limited to £10). There are exceptions to this rule, for example, if you enter into personal guarantees with the bank or a landlord, then you may still have personal liability in excess of your shares. You also need to take advice from an accountant and a lawyer as there may be tax advantages depending on whether you operate as a sole trader or through a limited company. Finally, the company still needs insurance, even though you limit your personal liability. Hope this helps.