Limited Company - LC

DEFINITION of 'Limited Company - LC'

A form of incorporation that limits the amount of liability undertaken by the company's shareholders. The naming convention for this type of corporate structure is commonly used in the United Kingdom. It is commonly known as a limited liability company (LLC) in the United States and other parts of the world.

BREAKING DOWN 'Limited Company - LC'

In a limited company, the debts of the company are separate from those of the shareholders. As a result, should the company experience financial distress because of normal business activity, the personal assets of shareholders will not be at risk of being seized by creditors. Ownership in the limited company can be easily transferred, and many of these companies have been passed down through generations.

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    In a word, yes. A limited liability company (LLC) is eligible to establish a simplified employee pension (SEP). Keep in ... Read Full Answer >>
  2. Can LLCs have employees?

    A limited liability corporation (LLC) can have an unlimited number of employees. An employee is defined as any individual ... Read Full Answer >>
  3. What are the requirements for being a Public Limited Company?

    The requirements for an entity to be considered a public limited company (PLC) include registration requirements, establishing ... Read Full Answer >>
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  5. What are the liabilities of a silent partner?

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    The risks that a business owner faces under a business structure with unlimited liability are literally unlimited, but they ... Read Full Answer >>
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