why do businesses use ltd 
businesses incorporate themselves as ltd limited to limit their liability to the capital they invest if the business cannot pay its liabilities and declares bankruptcy creditors can only go after business assets not the owner s personal assets the bottom lineltd limited structured corporations provide owners with a degree of financial protection limiting recourse to only the amount invested in the business while keeping their personal assets safe this type of abbreviation is more commonly used in the u k and not in the u s where in the u s a similar type of company is an incorporated business 