What does it mean to be a Limited Company?
Limited Companies are a separate and distinct legal entity in its own right
You may own the company and all its shares but you do not own the assets in the company nor are you personally responsible for its liabilities (unless you have personally guaranteed the liabilities). In plain English this means should things go sadly wrong you can walk away and not lose your house or your personal assets.
Trading as a limited company can enhance your image, over that of a sole trader and potentially win business.
Using a limited company gives you a measure of protection for your trading name. The company name is legally protected, which means there can only be one company in the UK with the same name (or anything too similar). This could well become a valuable intellectual property.
As stated above a limited company is a separate legal entity and as such transferring ownership of the company and its assets can avoid expensive conveyancing costs and the more expensive rates of stamp duty for property.
Finally, there are many examples where NOT being a registered limited company can prohibit you from gaining access to work, because of tax and employment protection rights given to employees.