What is a primary advantage of a Private Limited Company (LTD)?

A primary advantage of a Private Limited Company (LTD) is limited liability. This means that the personal assets of the shareholders are protected in the event that the company faces financial difficulties or is unable to pay its debts. Shareholders are only liable for the amount they have invested in the company, which effectively safeguards their personal finances from being targeted by creditors. This feature encourages investment in the company, as individuals can participate in ownership without risking their personal wealth beyond their initial contribution.

The option regarding the ability to sell shares to the public is more applicable to Public Limited Companies (PLCs), which can list their shares on the stock exchange. Unlimited liability, which suggests that owners could potentially lose their personal assets, applies to other business structures like sole proprietorships or partnerships. Finally, while ease of dissolution can vary depending on the specific circumstances and regulations governing the company, it doesn't particularly highlight an intrinsic advantage of the LTD structure compared to its limited liability, which is a significant factor in attracting investors and facilitating business operations.