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

Pacaso sets up a limited liability corporation to buy a property, then divides the LLC into eight ownership shares that it sells on its website.

From Los Angeles Times

He bought the second house through a limited liability company, public records show, as he did with the Hollywood Hills mansion.

From Los Angeles Times

The statement said Mr. Jones owned two cars and two boats valued at $274,000, but listed as “unknown” the value of his premarital agreement, eight limited liability companies and several trusts.

From New York Times

Ms. Huynh said Mr. Hassan owns more than 50 limited liability companies to hold his tech investments and real estate properties.

From New York Times

The companies do provide limited liability insurance for hosts, but they leave them to navigate legal issues and local ordinances on their own.

From Seattle Times