Types of limited liability company - SS1 Commerce Lesson Note

Private LLC

A private LLC is a company owned by a limited number of individuals or entities. It is not publicly traded on the stock market. In a private LLC, the ownership is typically restricted to a few members who are involved in the day-to-day operations of the business. These members often have a close relationship and may include family members or business partners. Private LLCs are commonly used for small businesses, startups, and family-owned enterprises.

Public LLC

A public LLC, also known as a publicly traded LLC, is a company that offers its ownership shares to the general public through the stock market. This means that anyone can buy and sell shares of the company's stock. Public LLCs have more extensive regulatory requirements and are subject to scrutiny from shareholders and regulatory bodies. They often have a larger number of owners, known as shareholders or stockholders, and are generally larger in scale. Public LLCs provide an opportunity for the general public to invest in the company and potentially benefit from its financial success.