limited liability

noun

1. 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

1. 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

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

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.

Word History and Origins

Origin of limited liability¹

First recorded in 1850–55

Example Sentences

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 Los Angeles Times

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

From BBC

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

From Los Angeles Times

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.

From New York Times

The buyer is unclear; records show it was purchased by a Delaware-based limited liability company.

From Los Angeles Times