Ltd vs. LLC

Discussion in 'Starting a Business' started by Austin01, Jan 31, 2012.

  1. Austin01

    Austin01
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    What's the difference between the two? If I were to register one in say the UK (Ltd.) then would I be able to later transfer it to a US LLC in the future?

    How would you go about doing so? Which is a better option overall?
     
  2. JPM

    JPM
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    The simplest answer is that if you move to the US and register a LLC, your UK ltd company will still exist bit obviously will only be useful If you continue to trade there. Many big organisations register both.

    Also if you wish to hear it from a professional in the industry, contact a rep at www.thecompanywarehouse.co.uk. that's where I registered Social Colleague Ltd and their advice was great.
     
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  3. Austin01

    Austin01
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    I currently live in the US, sorry if I confused you, but same thing still applies. However this would be for a mainly online business with no physical product being sold. Only digital copies, would anything change?

    Thank you for the link as well.
     
  4. jcworlditsme

    jcworlditsme
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    If you were living in the US and selling only online products, you probably only need a US registration.
     
  5. sabinasmith

    sabinasmith
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    LLC stands for Limited Liability Company and LTD stands for limited company.
     
  6. StarBC

    StarBC
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    My suggestion is to open an LLC in the USA. First, it's a very flexible business entity. There are no strict rules about LLC organization number of members and management. You even have a choice how to pay your taxes. Second, do you really want to pay twice for UK registration and then for US license to conduct your business and also have all those tax and paper burden in 2 countries?
     
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  7. merryscanlan

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    Ltd stands for limited while LLC stands for Limited Liability Company. In an Ltd, a shareholder’s liability is limited to the amount he/she invested in the company. On the other hand, in an LLC, members are protected from some or all liability depending on the applicable jurisdiction. An Ltd shares can’t be sold to the general public. Conversely, an LLC can involve members ranging from one to multiple individuals. An Ltd is taxed as a separate entity, while an LCC can be taxed as a partnership, S corporation or C corporation.
     

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