Limited companies are by far the better option for most businesses and are more commonly used than unlimited companies. In the United Kingdom there are two types of limited company: those limited by shares, which are more common, and those limited by guarantee, generally only used for non-profit organisations.
Unlimited companies have certain advantages, for example they are subject to a much less rigorous reporting regime, but are appropriate in only very specific situations as owners, members, and directors of an unlimited company expose their personal assets to the creditors of the company; they are said to be jointly and severally liable for the obligations of the company.