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This question is about jobs.
What is ltd in business?
Ltd in businesses means limited liability. When a company has limited liability, the owners are usually not personally responsible for the debts and obligations of the business, and the company's creditors cannot go after the owners' personal assets like their cars or their homes.
In other words, when you form and properly maintain a business with limited liability, your financial responsibility will not exceed the amount of money you invested in the business. If someone successfully sues your company, for instance, they cannot collect more than what the business owns. If your business does not have enough money or assets to liquidate to pay the judgment, you are not responsible for paying the difference, and the remaining business debt will go unpaid.
Not all businesses, however, can include "ltd" in their names. To include ltd in your company's title, you must have one of the following companies:
Corporation: A corporation is a business structure that is owned by shareholders and run by a board of directors. All of the shareholders and directors have liability protection.
Professional corporation (PC): In some states, if you are a licensed professional such as a doctor or an accountant, your only option for limited liability is a professional corporation ("PC"). A PC limits the owners' liability for business debts and the obligations of partners in the company. The owners remain liable for their own professional malpractice.
Nonprofit corporation: A nonprofit corporation is similar to a corporation in management structure, but different in how it handles profits. Instead of distributing profits to shareholders, nonprofits must use their revenue to further its charitable purpose. Nonprofit directors enjoy limited liability.
Limited liability company (LLC): An LLC is an entity that combines the flexibility and tax benefits of a partnership with the limited liability of a corporation. All LLC owners have liability protection.
Limited partnership (LP): An LP is a structure where one or more general partners operate the business and are personally liable for the debts of the business, and one or more limited partners are not involved in day-to-day affairs and have liability protection.
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