Inc. vs. Ltd. vs. Corp.

What’s the Difference?

Canadian corporate names generally require three elements:

• A distinctive element (something that makes the name unique)
• A descriptive element (something that describes the business)
• A legal element (confirming the business is incorporated)

In “Ace Furnace Repair Ltd.”, “Ace” is distinctive, “Furnace Repair” is descriptive, and “Ltd.” is the legal element.

The available legal elements in Canada are:

• Limited or Ltd.
• Incorporated or Inc.
• Corporation or Corp.

There is no legal difference between them. They have the same rights, responsibilities, and liability protections.

Which Should You Choose?

The choice comes down to whatever sounds best to you. Inc. and Ltd. are the most commonly chosen.

One Exception

For numbered corporations, we recommend using Ltd. as the legal element. It’s the most commonly used for numbered corporations in Canada, and using something different often leads to confusion and errors.

What About ULC, LLC, C-Corp, S-Corp and LLP?

• ULC (Unlimited Liability Company) — Available in BC, Alberta and Nova Scotia but rarely used for Canadian businesses
• LLC (Limited Liability Company) — Common in the US but not available in Canada
• C-Corporations and S-Corporations — US-specific designations, not applicable in Canada
• LLP (Limited Liability Partnership) — Usually restricted to professional service partnerships like accounting and law firms