A limited company (Ltd) is generally a corporation under local law. The corporate abbreviation “Ltd” is commonly used in non-U.S. jurisdictions.

For example, a corporation formed in the Cayman Islands, Bermuda, or BVI, is characterized as a “limited company” and uses the abbreviation “Ltd” following the entity name. 

Many U.S. states permit a corporation to use Ltd.; however, “Incorporated” or “Inc.” is more common. For example, under Delaware statute, the corporation name on the Certificate of Incorporation must contain 1 of the words “association,” “company,” “corporation,” “club,” “foundation,” “fund,” “incorporated,” “institute,” “society,” “union,” “syndicate,” or “limited,” (or abbreviations thereof, with or without the punctuation).

Corporate entities formed in Delaware commonly use “Inc.” but can use “Ltd.” if desired. 

Example Delaware Corporation

John Taxpayer wants to form a corporation in Delaware. John wants to name the entity John Taxpayer, so some of his available options include the following entity names:

  • John Taxpayer Inc.
  • John Taxpayer, Inc.
  • John Taxpayer Ltd.
  • John Taxpayer Corp.
  • John Taxpayer Co.
Other Entity Types Available in the U.S.

Business owners have many options when it comes to selecting a business entity. Some of the most popular entity types include: