"Ltd." is a standard abbreviation for "limited," which is a form of corporate structure available in countries including the U.K., Ireland, and Canada. In a limited company, shareholders liability is limited to the capital they originally invested, and if such a company becomes insolvent, the shareholders' personal assets remain protected. The term appears as a suffix that follows the company name, indicating that it is a private limited company. Limited companies may be limited by shares or by guarantee. In a company limited by shares, the liability of members is limited to the unpaid value of shares. In a company limited by guarantee, the liability of owners is limited to such amount as the owners may undertake to contribute to the assets of the company, in the event of being wound up.
The only businesses that can include "ltd." in their names are those that enjoy limited liability, such as corporations and limited liability companies (LLCs) . Whether you can or must include "ltd" or another suffix in your company's name depends on the type of business entity you form and the laws of your state.
"Ltd." is not to be confused with "LLC," which stands for "limited liability company." LLCs are a type of business structure that combines the liability protection of a corporation with the tax benefits of a partnership.
In summary, "Ltd." is a suffix that indicates a private limited company, which is a type of corporation that limits the personal liability of the corporation's shareholders.
