Definition of "limited liability" [limited liability]

• The liability of a firm's owners for no more capital than they have invested in the business. (noun)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

• "The low-profit, limited liability corporation or L3C seeks to combine the features of a regular limited liability company with the socially beneficial aspects of a nonprofit."
• "The limited liability company (LLC) and the limited partnership (LP) are blessed with the charging-order rule."
• "That FINCO will take steps to float a limited liability company hereinafter referred to as the Company to carry on the business of producing and marketing wood charcoal in Sri Lanka."