A Limited Company (ltd) is a company “limited by shares”
This means the company:
- Is legally separate from the people who run it
- Has separate finances from your personal ones
- Has shares and shareholders
- Can keep any profits it makes after paying tax
The company also has “limited liability” Once created, the company is a separate legal entity with finances that are separate from yours. This means that, in the event of liquidation or litigation, the most you can be liable for personally is the face value of your share in the business. Any further liability must be paid out of the company’s assets. Any private assets you have will (usually) be safe.