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

5/10/2019

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Society Story: 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?

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28 Comments

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.

Jose N Cardona

Jaimi McEntire, Agree.

Steve Tingle

some years ago another type was created in the UK - Plc which some larger Ltd companies converted to. Can't remember what it stood for and don't know if it still exists.

dmarkc

Thanks for further information in the comments as the explanation was, uh, limited.

Jaimi McEntire

Sorry, you are wrong. LTD meand "Limited Company", and is a type of company similar to an LLC. That is, the stock holders are limited in liability to their initial investments only.

Jaimi McEntire

littledick, The poster is wrong. "Ltd" is "Limited Company" and is the UK/Canada/Ireland equivalent of LLC in the US.

catsmeow

I have always wanted to know that. Thank you!

Ilias Tsiabardas

Very good information thank you

luublu

very informative

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