Limited Liability definition: Copy, customize, and use instantly
Introduction
The term "Limited Liability" refers to a legal structure where an individual's financial responsibility for debts or obligations of a business or entity is restricted to the amount they have invested. It protects personal assets from being used to satisfy business liabilities, making it a key feature of corporate, partnership, or LLC frameworks.
Below are various examples of how "Limited Liability" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Limited Liability" as a restriction on personal responsibility
This definition ties "Limited Liability" to personal protection.
"Limited Liability" means a legal framework that restricts an individual’s financial responsibility for an entity’s debts to the extent of their investment or shareholding.
Definition of "Limited Liability" as protection for personal assets
This definition focuses on asset protection.
"Limited Liability" refers to the protection afforded to investors or members, ensuring their personal assets are not at risk for the obligations of the entity.
This definition ties "Limited Liability" to corporations.
"Limited Liability" means a characteristic of corporate entities, ensuring that shareholders are only liable for the debts of the business up to the value of their shares.
Definition of "Limited Liability" as a safeguard for business investors
This definition highlights investor safeguards.
"Limited Liability" refers to a legal safeguard that limits the financial exposure of business investors to their initial contribution.
Definition of "Limited Liability" as a principle in limited partnerships
This definition ties "Limited Liability" to partnerships.
"Limited Liability" means a principle applied in limited partnerships, where limited partners are not personally liable for the debts of the business beyond their investment.
Definition of "Limited Liability" as a mechanism for risk management
This definition focuses on risk.
"Limited Liability" refers to a mechanism in business law that manages risk by separating personal and business liabilities.
Definition of "Limited Liability" as a fundamental element of LLCs
This definition ties "Limited Liability" to LLCs.
"Limited Liability" means a defining feature of Limited Liability Companies (LLCs), protecting members from personal responsibility for the company’s obligations.
Definition of "Limited Liability" as a boundary for financial exposure
This definition highlights financial exposure.
"Limited Liability" refers to a legal boundary that restricts an individual’s financial exposure in a business to the amount of their investment.
Definition of "Limited Liability" as a benefit of incorporation
This definition ties "Limited Liability" to incorporation.
"Limited Liability" means a benefit of incorporating a business, providing shareholders with protection from personal liability for corporate debts.
Definition of "Limited Liability" as a distinction between personal and business liabilities
This definition focuses on separation.
"Limited Liability" refers to a distinction in law that ensures personal liabilities are separate from the liabilities of the business entity.
Definition of "Limited Liability" as a legal shield for owners
This definition ties "Limited Liability" to ownership protection.
"Limited Liability" means a legal shield that protects business owners from being personally responsible for the debts and obligations of the business.
Definition of "Limited Liability" as a protection for shareholder equity
This definition focuses on shareholder equity.
"Limited Liability" refers to the legal principle that restricts shareholder liability to the value of their equity investment in the entity.
Definition of "Limited Liability" as a feature of modern corporate structures
This definition ties "Limited Liability" to corporate frameworks.
"Limited Liability" means a hallmark of modern corporate structures, ensuring personal assets of owners are insulated from business debts.
Definition of "Limited Liability" as a limitation on creditor claims
This definition highlights creditor protection.
"Limited Liability" refers to the legal limitation that prevents creditors from pursuing personal assets of the business’s owners for debt repayment.
Definition of "Limited Liability" as a financial safeguard for business stakeholders
This definition ties "Limited Liability" to stakeholder protection.
"Limited Liability" means a financial safeguard ensuring stakeholders are only responsible for business liabilities up to the amount of their contributions.
Definition of "Limited Liability" as a component of risk-averse business entities
This definition focuses on risk aversion.
"Limited Liability" refers to a component of business entities designed to reduce risk exposure for individual members or shareholders.
Definition of "Limited Liability" as a legal separation of liabilities
This definition ties "Limited Liability" to liability separation.
"Limited Liability" means the legal separation of an individual’s personal obligations from the liabilities of the business entity they own or manage.
Definition of "Limited Liability" as a key advantage for investors
This definition highlights investment benefits.
"Limited Liability" refers to an advantage provided to investors, ensuring their financial exposure does not exceed their initial capital contributions.
Definition of "Limited Liability" as a statutory privilege for business owners
This definition ties "Limited Liability" to statutory privileges.
"Limited Liability" means a statutory privilege granted to business owners, protecting personal assets from claims against the business.
Definition of "Limited Liability" as a foundation for entrepreneurial ventures
This definition focuses on entrepreneurship.
"Limited Liability" refers to a legal foundation that encourages entrepreneurial ventures by mitigating personal financial risk.
Definition of "Limited Liability" as a business law principle
This definition ties "Limited Liability" to legal principles.
"Limited Liability" means a foundational principle in business law that ensures owners are not personally accountable for business debts beyond their investment.
Definition of "Limited Liability" as a condition for attracting capital
This definition highlights capital attraction.
"Limited Liability" refers to a condition that helps businesses attract capital by limiting investor risks to their financial contributions.
Definition of "Limited Liability" as a benefit under corporate law
This definition ties "Limited Liability" to corporate law.
"Limited Liability" means a benefit under corporate law that protects the personal wealth of shareholders from corporate debt obligations.
Definition of "Limited Liability" as an economic risk management tool
This definition focuses on economic safeguards.
"Limited Liability" refers to a risk management tool in the economy that encourages investment by limiting financial exposure.
Definition of "Limited Liability" as a key feature of business registration
This definition ties "Limited Liability" to registration benefits.
"Limited Liability" means a key feature of business registration, allowing entities to legally separate personal and business obligations.
Definition of "Limited Liability" as a protection against unforeseen business losses
This definition highlights unforeseen losses.
"Limited Liability" refers to a legal structure protecting owners from personal responsibility for unexpected losses incurred by the business.
Definition of "Limited Liability" as a safeguard in limited partnerships
This definition ties "Limited Liability" to partnerships.
"Limited Liability" means a safeguard for limited partners, ensuring they are only liable for the partnership’s debts up to their investment amount.
Definition of "Limited Liability" as a mechanism for separating personal and professional finances
This definition focuses on financial separation.
"Limited Liability" refers to a mechanism that separates an owner’s personal finances from the professional liabilities of their business.
Definition of "Limited Liability" as an incentive for business incorporation
This definition ties "Limited Liability" to incorporation benefits.
"Limited Liability" means an incentive for businesses to incorporate, as it provides protection against personal financial exposure.
Definition of "Limited Liability" as a cornerstone of limited liability companies
This definition highlights LLCs.
"Limited Liability" refers to a cornerstone of LLCs, protecting members’ personal assets from business liabilities and obligations.
Definition of "Limited Liability" as a basis for fostering economic growth
This definition ties "Limited Liability" to economic benefits.
"Limited Liability" means a legal concept that fosters economic growth by reducing the financial risks associated with starting or investing in businesses.
Definition of "Limited Liability" as a barrier against personal bankruptcy from business debts
This definition highlights bankruptcy protection.
"Limited Liability" refers to a barrier that prevents personal bankruptcy by limiting an individual’s liability to their business investments.
Definition of "Limited Liability" as a defining feature of joint-stock companies
This definition ties "Limited Liability" to joint-stock companies.
"Limited Liability" means a defining feature of joint-stock companies, protecting shareholders from being personally liable for corporate debts.
Definition of "Limited Liability" as a legal structure encouraging investment
This definition highlights investor incentives.
"Limited Liability" refers to a legal structure designed to encourage investment by limiting the personal financial risks for investors.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.