There are many different types of business entities in the United States, each with its own advantages and disadvantages. One type of business entity is the public limited company (PLC). A PLC is a company that is owned by shareholders and whose shares are traded on a stock exchange. There are many benefits to owning a PLC, but there are also some drawbacks that you should be aware of before you decide to form one.
Benefits of a PLC:
1. Access to capital: One of the biggest advantages of a PLC is that it can raise capital by selling shares to the public. This can be done through an initial public offering (IPO) or by listing the shares on a stock exchange. This means that a PLC can raise large sums of money to finance its operations and expansion.
2. Limited liability: Shareholders in a PLC have limited liability for the debts and obligations of the company. This means that they will not lose more than the value of their investment if the company goes bankrupt. This protection is not available to shareholders in other types of business entities, such as sole proprietorships and partnerships.