What is the difference between sole trader and limited company?

What is the difference between sole trader and limited company?
A SOLE TRADER is a person who is trading. He is personally responsible/liable for any debts he may incur in the course of running his business.UNDER COMPANY LAW, in most countries, it is possible to form 'a company '. Originally 'companies' were formed by a group of people who pooled some capital in order to set up a business. In company together they each became owners of the 'company', entitled to a share of the profits of that trading unit.As a new entity, the 'company' was/is treated as a 'person', as a legal entity in its own right. The 'company' could trade, buy land, goods, hire labour, make things, sell them etc. It is the same today, investors buy shares in a new company, which the company then uses to establish a new business.
Formerly a company had to have at least two 'members' to be a 'company'. However it is now permitted (in some countries) for only one person to form a 'company'.THE OWNERS' LIABILITY was/is LIMITED to the amount they put into the company when setting it up. Consequently companies formed under this arrangement are called 'limited liability' companies, or, more usually, just 'Limited' companies.Should difficult economic circumstances arise and the company has greater financial liabilities than its assets, there is no recourse to the owners to settle any company debts. The 'company' alone is responsible. If it cannot pay its debts, it must cease trading and be closed, or 'wound up', and any money left, if any, is distributed to creditors in proportion to the amount they are owed. e.g. If the company owes 300 schnickles in total to two suppliers,'A' and ''B', 200 to 'A' and 100 to 'B', but there is only 6 schnickles left, 'A' will only get 4 schnickles and 'B' will get only 2!IN VIEW of the 'protection' offered to owners/investors by this 'limited' arrangement, there are strict additional legal responsibilities placed on 'Limited' companies that do not apply to sole traders.IN CONTRAST with a COMPANY, if a SOLE TRADER's business gets into financial difficulties, he is personally responsible for any debts. He may even be forced to sell his house and personal assets in order to pay creditors. If he cannot pay his debts he can be declared a 'bankrupt'.