In accounting, LTD stands for “Limited.” This term is often used in the context of companies and organizations, particularly in countries like the UK and Canada. A company designation of ‘Ltd’ indicates that it is a limited company, meaning that the liability of the company’s members (typically its shareholders) is limited to the amount they have invested in the company or the amount they have guaranteed to pay in the event of the company’s liquidation.
This structure is often favored by business owners because it offers a layer of protection for personal assets against company debts and liabilities. While ‘Ltd’ primarily refers to the legal structure of a business entity, it is not a financial term like YTD (Year to Date) or YTG (Year to Gain) but rather a designation that indicates the legal limitations of the company’s financial responsibility.