what is ltd limited 
ltd is a standard abbreviation for limited a form of corporate structure available in countries including the u k ireland and canada the term appears as a suffix that follows the company name indicating that it is a public or private limited company in a limited company owners and shareholders liabilities are limited to the capital they originally invested if such a company becomes insolvent the owners personal assets remain protected because the business is a legal entity and liable for its debts understanding ltd limited a limited company is its own legal entity a private limited company has one or more members also called shareholders or owners who buy in through private sales directors are company employees who keep up with all administrative tasks and tax filings but do not need to be shareholders the company s finances are separate from the owners and are taxed separately the company owns all profits pays taxes on them distributes a portion to shareholders as dividends if applicable and retains the rest as working capital a director may withdraw funds only for a salary dividend payment or loan limited companies are an organizational form that features limited liability similar to corporations in the u s by setting up a private limited company it becomes separate from the people who run it any profits made by the company can be pocketed after taxes are paid the corporation s finances must be kept separate from personal finances to avoid confusion public limited companies plcs are commonly used in the u k and some commonwealth countries the mandatory use of the plc abbreviation after the company s name serves to instantly inform investors or anyone dealing with the company that the company is public and probably fairly large 1plc stock can be listed or unlisted on a stock exchange like any other major entity they are strictly regulated and are required to publish their true financial health so shareholders and future stakeholders can size up the true worth of their stock and the risks associated 