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What is the difference between Inc., Ltd., Co. and LLC?

When forming a business, you definitely want to make sure that you are forming it properly. The primary difference between the terms Inc., Ltd., Co., and LLC are that they can be divided into two categories: Limited Liability Companies and Corporations.

Limited Liability Company (LLC)

Many people choose to form their small business as an LLC simply because it provides an extra layer of legal protection as far as protecting your personal assets go. This formation separates personal and company funds so that in the event of the company getting sued, only the funds from the business are up for grabs.

This is also an attractive formation because it is very flexible. A business of this type is owned by members and operated by either third-party managers or the members themselves. It’s a very popular formation, and it is said that about 75% of small businesses are formed under an LLC.

Corporations (Inc., Ltd., Co.)

The primary difference between this type of company is that it is owned by stockholders. There are directors or officers that are appointed and help manage the day-to-day nuances of operating a business.

The stakeholders appoint the directors, and then the directors are charged with finding other officers of the corporation that manage the various tasks of running a business. This type of set-up ensures that no single person has all of the say in your company.


This information was taken from Quora. Click here to view the original post.

Did you know the difference between these abbreviations? Was this information new to you?

#Society #Quora

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What are your thoughts on this subject?
25 Comments
catsmeow
I have always wanted to know that. Thank you!
0
Mar 11, 2020 1:21PM
littledick
So I assume there is no difference among the terms "Inc., Ltd. or co." The only difference then is between those 3 and the "LLC". The question posed seems to indicate that each one is different.
1
Feb 25, 2020 5:43PM
Darlene Davidson
Useful and concise information.
0
Feb 20, 2020 6:31PM
Ilias Tsiabardas
Very good information thank you
0
Feb 1, 2020 8:31PM
luublu
very informative
0
Dec 6, 2019 12:03AM
mmariano
Involving both legal and general information,very informative and helpful not only for those planning to go into business or enterprise but to the general public as well. Thank you so much
2
Dec 5, 2019 5:21PM
Ruthanne Nicholls
Great information thank you some questions I had have been answered
1
Oct 24, 2019 9:04PM
Wjohnson
Knew the difference but didn't mind as long as it didn't affect my position within the company.
2
Sep 26, 2019 4:30PM
jack patti go
I never knew these important meanings! Thanks for yhis information!
0
Sep 1, 2019 11:39PM
pisegnaelena
Good to know.. thank you
0
Aug 17, 2019 8:21PM
rmtalantis
Einstein quotes, "when we stop learning, we die".
0
Aug 11, 2019 2:55PM
rmtalantis
Thanks for info
0
Aug 11, 2019 2:51PM
Cheryl McMeekin
Great to know
0
Jul 25, 2019 1:13PM
gregjoan
Very informative and good info to knoe!!
0
Jul 13, 2019 7:39PM
Dario Gritti
It's worth pointing out that this is U.S. law. Other jurisdictions use different terminology for similar corporate entities and, sometimes, use different legal concepts.
1
Jul 9, 2019 4:45PM

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