how to set up a limited company
for anyone in the u k there are several things you ll need to set up a limited company including 23once you have these together you can then register as a private limited company types of limited companieslimited company structures are common worldwide and are codified in many nations though the regulations governing them can differ widely from one country to the next for example in the united kingdom there are private limited companies and public limited companies private limited companies are not permitted to offer shares to the public they are however the most popular structures for a small business public limited companies plcs may offer shares to the public to raise capital those shares may trade on a stock exchange once a total share value threshold is met at least 50 000 such a structure is widely employed by larger companies 4all companies listed on the london stock exchange lse are plcs 5in the united states a corporation is similar to a limited company using the suffix inc incorporated or corp corporation some states in the u s do permit the use of ltd limited after a company name these designations depend on filing the correct paperwork just adding the suffix to a company name does not provide any liability protection limited companies in the u s are required to file corporate taxes annually with regulators limited liability companies llcs and limited companies have different structures 6many countries differentiate between public and private limited companies for example in germany the aktiengesellschaft ag designation is for public limited companies that can sell shares to the public while gmbh is for private limited companies that cannot issue public shares advantages and disadvantages of a limited companybecause the number of shareholders is unlimited ownership is spread among multiple owners rather than just one also shareholders only lose as much as they have invested if the company becomes insolvent for example say a limited company issues 100 shares valued at 150 each shareholder a and shareholder b own 50 shares each and paid in full for 25 shares each if the company becomes insolvent the maximum amount shareholder a and shareholder b each lose is 3 750 the value of the 25 shares each member holds a limited company has greater tax advantages than a sole proprietorship partnership or similar organization because the owners are not personally responsible for paying taxes the company as a legal entity is the company continues to exist if an owner sells or transfers their shares as long as it has other shareholders and remains profitable and operational 