limited liability


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limited liability

n
(Stock Exchange) Brit 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

If a company goes bankrupt and has limited liability, the owners of the company (the shareholders) are only obliged to pay back company debts with the money they have already invested in the firm. They will not be forced to sell their personal possessions to help pay debts.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.limited liability - the liability of a firm's owners for no more than the capital they have invested in the firm
financial obligation, indebtedness, liability - an obligation to pay money to another party
References in classic literature ?
I suppose I can't very well turn myself into a Limited Liability Company.
The statement of objects and reasons of the bill says that the proposed law also provides an alternative form of business organization, which has the flexibility of general partnership and would avail all the advantages of a limited liability company.
The buyer, a limited liability company, was also secured and represented by the team.
The law also allows the juridical personality to set up a joint private or limited liability company whose owner shall only be liable about its obligations in view of the capital stated in the articles of association under the limited liability company provisions of the law.
2) This argument challenges the longstanding assumption of the optimality of limited liability.
Under amendments to the Limited Liability Company Act, an L3C "shall at all times significantly further" charitable or educational purposes as those purposes are defined by the Internal Revenue Code.
Leaving aside the specialized types of legal entities, such as an agricultural company or credit union or similar, there are three main forms of profit seeking legal entities--the Individual enterprise, private limited liability company and public limited liability company.
partnership or limited liability company distributions, when and if
Until the release of the Revenue Ruling 88-76, some twenty years ago in August 1988, only two states adopted limited liability company legislation: Wyoming in 1977 and Florida in 1982.
Example: Two partners of a domestic eligible entity are a domestic corporation, D, and a domestic limited liability company, L.
Sales can be structured to irrevocable trusts for family members, partnerships, limited liability companies and corporations.
of Illinois) provide commentary on limited liability partnership statutes in the United States through approximately August 15, 2004.

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