The differences between them is the liability that the directors of the company will incurr. In a limited company, the liability is limited and will not affect the director's personal assets (although there are exceptional cases, eg "lifting the corporate veil"). On the other hand, Unlimited company (eg sole practitioner, partnership) have unlimited liability and may affect the directors' personal assets.
If a company goes into liquidation, a limited company most probably will be in administraion and sometimes it will end up in court and judge decide should the corporate veil be lifted.
these are the VERY BASIC idea, don't rely just on this is making ur judgement