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.

Discover More

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.

Discover More

51�Թ� History and Origins

Origin of limited liability¹

First recorded in 1850–55

Discover More

Example Sentences

Examples have not been reviewed.

The identity of every single buyer isn’t clear, since many are obscured by trusts or limited liability companies, but real estate records and local sources suggest that developers are buying the lion’s share of lots.

From

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.

From

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.

From

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

From

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

From

limited edition limited monarchy

Browse