Limited Company (LC)

Like when you get to the VIP room of VIP rooms, where the only people allowed in are LeBron James, Tom Cruise, and Jennifer Aniston. Limited company.

Also, the term represents a distinction in corporate law. Basically, forming an LC protects owners from runaway losses. You invest $50,000 in an LC. The company goes bankrupt. You lose your $50,000, but the firm's creditors can't sue for your house or other personal assets. You can only lose what you put in.

The specific aspects of an LC change from country to country and jurisdiction to jurisdiction. In the U.S., we're talking about corporations: companies ending in Inc., Corp., or Ltd.

An LC differs from a Limited Liability Company, or LLC. The distinctions largely come from how they are taxed. Limited companies (like "C" corporations) are taxed as separate entities for U.S. federal taxes. For LLCs, these taxes take place on the individual level...the company doesn't pay a tax, just the owners.

See: Limited Liability Company - LLC.