limited liability

Definition of "limited liability"
  1. A characteristic of corporations and LLCs that limits a business owner's financial responsibility to the amount invested in the business, protecting personal assets from business debts, claims, and judgments
How to use "limited liability" in a sentence
  1. The restaurant owner appreciated the security of limited liability, knowing her personal assets were safe even if the business failed.
  2. He incorporated his startup to take advantage of the limited liability feature.
  3. Due to the concept of limited liability, creditors could not seize the individual's personal assets when the company went bankrupt.

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