LLC in the United States vs Ltd in the United Kingdom

You may come across businesses with LLC and Ltd at the ends of their names that are competitors. Both these companies are created under different jurisdictions in their home country. They may seem similar but there are many differences between LLC and Ltd.

Limited Liability Company - United States

LLCs are designated for people who want the structure of their business to have individual and separated assets. This allows for the liability of the company to not become a liability of the employees or owners.

The LLC business model is easy to organize and does not require creating a board of directors or holding board meetings.

An LLC is a company that provides its members with certain benefits, specifically limited liability for personal assets. The personal assets of the members receive protection from any liability of the LLC.

Limited Corporation - United Kingdom

As opposed to an LLC, a limited corporation is not by itself a business or corporate model. Instead, it is a description of a corporation that has shareholders who have limited liability.

A business that incorporates an S corporation or C corporation can have "Ltd" after its name. Both an S corporation and a C corporation have shareholders who hold stock in the company, and they provide those shareholders with limited liability. Because of their status as corporations with limited liability, S and C corporations can use the term "Ltd."

By contrast, LLCs, which are not corporations, cannot end their names with "Ltd." An LLC is a company because it does not have shareholders. "Ltd" is only applicable to corporations.

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