A limited company is an organisation that is set up to run a business. All finances are kept separate from your personal finances, and profits are distributed to shareholders as dividends after corporation tax. Generally, there are two types of limited companies:
- Public Limited Company (PLC) – Shares can be bought and sold through a stock exchange.
- Private Limited Company (Ltd) – Cannot buy and sell shares through a stock exchange.
Registering as a limited company protects your company name and restricts others from using the same title. However, bookkeeping and accounting for a limited company is more complex and requires you to keep accurate ongoing records.