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.

---

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

---

limited liability Cultural  

1. 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.

Etymology

Origin of limited liability

First recorded in 1850–55

Example Sentences

See Examples For:

limited liability

The mansion is currently registered to a limited liability company.

From MarketWatch ● Aug. 17, 2026

The company bought over 700 properties across the U.S. using limited liability companies and sold shares—or tokens—in those companies exclusively to foreign investors using cryptocurrency and blockchain technology.

From The Wall Street Journal ● Jul. 28, 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

Imperial Valley Computer Manufacturing, a California-based limited liability company that started two years ago, wants to develop a 950,000-square-foot center in the county that’s designed for advanced artificial intelligence operations.

From Los Angeles Times ● Mar. 27, 2026

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

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