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Thursday, March 11, 2021 2:30:31 PM
Ltd Structure
As opposed to an LLC, an Ltd—or 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 as 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—in which the personal assets of shareholders are not subject to corporate liabilities. 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, not a corporation, because it does not have shareholders. State law determines that "Ltd" is only applicable to corporations.
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