What Is the Difference Between an Incorporated Company Inc. and a Limited Company Ltd.?

A company name ending in Ltd. means that the amount of risk or liability for its shareholders for any corporate failure or debt is limited to the amount of their personal investment in that company.

In an incorporated company or corporation, also known as Inc., the business is recognized as a single entity, and the personal assets of its principals are protected from creditors if the business fails.

Only stockholders risk losing the amount of their investment.

About Karen Hill

Karen Hill is a freelance writer, editor, and columnist. Born in New York, her work has appeared in the Examiner, Yahoo News, Buzzfeed, among others.

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