limited liability

American  

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.

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limited liability British  

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

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limited liability Cultural  

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

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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.

Etymology

Origin of limited liability

First recorded in 1850–55

Example Sentences

See Examples For:

limited liability

Because of the scale of the planned celebrations, the foundation created a limited liability company, “Freedom 250,” to “execute events, activities, and celebrations in or around national parks,” according to the Freedom 250 website.

From Los Angeles Times ● May 29, 2026

Property records show that the unit is still registered to the limited liability company that Jackman and Furness used when they purchased the home in 2008.

From MarketWatch ● Apr. 6, 2026

The address listed for the LLC is the same as the one registered for another limited liability company tied to the purchase of a $42 million Lake Tahoe home in December.

From MarketWatch ● Mar. 16, 2026

Moderna will appeal to a federal circuit court to argue that it has limited liability as a government contractor.

From Barron's ● Mar. 4, 2026

To that end, he set up a limited liability company.

From "Sapiens: A Brief History of Humankind" by Yuval Noah Harari