LIMITED LIABILITY Definition & Meaning

limited liability

noun

a liability restricted by law or contract, as the liability of owners of shares in a corporation or limited company, or that of a special partner.

limited liability

noun

liability restricted to the unpaid portion (if any) of the par value of the shares of a limited company. It is a feature of share ownership

limited liability

A fundamental feature of corporations , whereby investors are liable only up to the amount of their investment .

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Notes

This principle is important for failing corporations because it holds that only the assets of the corporation, not the personal assets of its owners, can be liquidated ( see liquidation ) to cover the corporation's debts.

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�y��vlog History and Origins

Origin of limited liability¹

First recorded in 1850–55

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Example Sentences

Examples have not been reviewed.

A limited liability company, or LLC, has become a popular legal entity because it combines the limited liability of corporations with the flexibility and tax characteristics of sole proprietorships or partnerships.

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The home’s tax bills are sent to the limited liability company, in care of Garvey’s mother-in-law, to an address in La Quinta, Calif., property records show.

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It is now run by a limited liability company based in Singapore and Los Angeles but is essentially owned by ByteDance.

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Walker, 36, who will retain ownership of the building through a limited liability corporation, is now working with LA4LA to obtain permanent financing.

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They have pointed to the stake each justice holds in a limited liability company or partnership that could benefit them should the justices declare the tax unconstitutional.

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