limited companies

Shareholders face capped risk

Limited companies are businesses where owners' financial liability is restricted to what they've invested—if the company fails, personal assets are protected.

The structure separates the company as a legal entity from its shareholders.

In British usage, "Ltd" follows company names; American equivalents include LLC and incorporated companies.

She registered her startup as a limited company.

ownership

shareholders

Owners of company stock

  • sharesUnits of company ownership
  • equityImpartial treatment or ownership value
  • stakeSharpened post or share

ownership · dividends · voting rights · minority shareholder · majority shareholder · stock · capital gains · proxy · annual general meeting · resolution

finance

capital

Wealth used for investment

balance sheet · accounting · audit · liquidity · treasury · funding · retained earnings · financial statements · corporation tax · fiscal year

structure

incorporation

Forming a legal entity

bylaws · memorandum · registrar · statutory · compliance · subsidiary · PLC · Ltd · corporate structure · annual return

legal

legal entity

Organization with rights

  • contractsEnforceable written agreements
  • sueBring legal action
  • suedSought damages legally

legal rights · jurisdiction · domicile · litigation · governance · corporate governance · fiduciary duty · legal standing

liability

personal assets

One's owned valuables

debt · creditors · exposure · risk · obligation · insolvency · bankruptcy · guarantee · indemnity · secured

investment

venture capital

Startup growth financing

private equity · securities · investors · valuation · funding round · return on investment · Series A · crowdfunding · shareholder value · exit strategy

Categories
Opposites
liability structure

limited companiessole proprietorships

Businesses with single owners

freelancers · self-employment · cottage industries

ownership restriction

limited companiespublic companies

Firms with tradeable ownership stakes

public corporations · PLCs · cooperatives

Family

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