limited liability


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Related to limited liability: Share capital, limited partnership, Sole proprietorship, Legal entity, Legal personality

limited liability

n. the maximum amount a person participating in a business can lose or be charged in case of claims against the company or its bankruptcy. A stockholder in a corporation can only lose his/her investment, and a limited partner can only lose his/her investment, but a general partner can be responsible for all the debts of the partnership. Parties to a contract can limit the amount each might owe the other, but cannot contract away the rights of a third party to make a claim. (See: corporation, shareholder, limited partnership, partnership, liquidated damages)

References in periodicals archive ?
at 584 (discussing England's adoption of limited liability in 1855).
The amount of the authorized capital of a private limited liability company may not be less than 10,000 litas (2,900 euros).
A limited liability company that wants to be an L3C must state in its articles of organization that the company is not designed to further political or legislative purposes and that "no significant purpose of the company" is the production of income or the appreciation of property.
Confirm that the proposed Limited Liability Company name is available and is not currently registered by someone else.
As news spread of the enactment of the New York Limited Liability Company Law, numerous owners have asked us whether they should convert to LLC status.
check-the-box regulations, but does not provide limited liability.
It was an inexpensive way to give us the limited liability protection that did not have before.
According to the ruling, Target would merge with, and into, the SMLLC (for valid business reasons) under the state General Corporation Law and Limited Liability Company Act, with the SMLLC surviving.
Last year, the AICPA council recognized the birth of a new kind of entity--the limited liability company (LLC)--in several states.
This article will explain how combined Limited Liability Company and Qualified Subchapter S groups (a group of S corporations wholly-owned by a parent S Corporation) offer the chance to simplify your business life and save a lot of money.
That's been one of the major stumbling blocks to getting complete limited liability to New York City real estate owners.
Second, LLC members retain their limited liability regardless of their level of participation in managing the LLC.

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