What Does LLC, Inc., Co., and Ltd. Mean?
For the untrained, the world of business can seem like a confusing and intimidating place. There are so many different abbreviations thrown around, and it can be hard to keep track of what they all mean.
Here, we are discussing the different abbreviations for an entity designator. An entity designator is a word or phrase at the end of a company name for certain types of business entities. Every state has slightly different requirements and some states won’t allow certain designators.
In this article, we’ll be taking a look at some of the most common entity designators.
What is LLC?
LLC, also abbreviated as L.L.C refers to a Limited Liability Company, which is a separate legal entity from the person or people forming it. Unlike a sole proprietorship or partnership, the LLC offers limited personal liability protection to its owners. LLCs are registered with the state at the Secretary of State (or similarly named office).
What is Series LLC?
A Series LLC is a type of LLC that offers liability protection to its owners not just for the LLC itself, but also for any subsidiaries or “series” underneath the umbrella of the LLC.
This special type of LLC is commonly used by real estate investors who place each property in a series.
What is a PLLC?
A PLLC, or Professional Limited Liability Company is a Limited Liability Company that offers a service that is regulated by the state. Each state has different requirements for what a licensed service is, but common licensed professions include lawyers, doctors, architects, engineers, accountants, and chiropractors.
What is LC?
LC, L.C., Limited Company, Ltd. Company, or Limited Co. is a designation used by some states to identify a Limited Liability Company.
What is Ltd.?
Ltd. is an abbreviation for the “Limited” in Limited Liability Company. In some states, an LLC can abbreviate as Ltd. or as Ltd. Liability Company.
What Is Co.?
Co. can mean different things in different contexts, but when used as an entity designator, it usually refers to a company. Many states allow Limited Liability Companies to use the Co. designator, however, a few states allow corporations to use Co.
What Is Inc.?
Inc. is the most common abbreviation for a Corporation. A corporation is a type of business entity that is owned by shareholders.
What Is Corp.?
Corp. is another abbreviation for a Corporation. Like the Corporation or Limited Liability Company, this is a type of business entity that offers its owners limited liability protection.
How Is Inc. Different From Corp.?
There isn’t much difference between Inc. and Corp, other than the main difference is that Inc. is often used to distinguish for-profit for business entities, while Corp. is used for both for-profit and non-profit organizations.
What is C corp.?
A C corp or C corporation refers to a legal structure for a corporation where the owners, or shareholders, are taxed separately from the entity.
What is S corp.?
An S corp or S corporation is a tax designation by the Internal Revenue Service (IRS) that is also known as the subchapter or small business corporation tax election. As an S corp, the owners, or shareholders, are taxed as a pass-through entity. This means that the income and losses of the corporation “pass through” to the shareholders, who then report it on their individual tax returns.
What is B corp.?
B-corp is a designation for a company that meets high standards for social, environmental, and governance practices. The term B corp is not an entity or tax designation, as a B-corp can apply to an LLC, an S-corp, or a C-corp.
What Is LP?
LP stands for Limited Partnership, which is a type of business entity in which there are two types of partners: general partners and limited partners. Limited partners have limited liability, meaning they are only liable for the amount of money they invested in the partnership. General partners, on the other hand, have unlimited liability and can be held responsible for the debts and obligations of the partnership.
What Is LLP?
LLP is an abbreviation for a Limited Liability Partnership. This type of partnership is similar to an LLC in that it offers limited liability protection to its partners.
However, unlike an LP, an LLP there aren’t any limited partners.
Related: LLP vs. LLC – What’s the difference?
What Is LLLP?
LLLP is an abbreviation for a Limited Liability Limited Partnership. This type of partnership is similar to an LLP in that it offers limited liability protection to both general and limited partners.
What is the difference between LLC and Inc?
The Limited Liability Company (or LLC) and Corporation (or Inc.) are both entities that are formed with a state to create a separate business entity. Both entities provide liability protection for the owners, however the LLC provides several benefits over the Corporation such as ease of formation, tax flexibility, fewer formalities, and more.
Related: What are the benefits of an LLC?
So, there you have it! These are the most common business entity designators terms that you are likely to come across. Hopefully, this article has helped to clear up any confusion you may have had about these terms.