in a limited company, the assets and debts of the company are separate from those of the shareholders. As a result, should the company experience financial distress because of normal business activity, the personal assets of shareholders will not be at risk of being seized by creditors.
Ownership in the limited company can be easily transferred, and many of these companies have been passed down through generations. Unlike a public company, in which anyone can buy shares, membership in a limited company is governed by a company’s rules and law.