limited liability


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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)

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The LLP Bill provides for establishment of new corporate vehicle to enable professional expertise and entrepreneurial initiative to combine, organise and operate in an innovative and efficient manner having benefit of limited liability on account of incorporation.
This Article proceeds as follows: In Part I, the Article sets forth the background for its analysis, including a short history of how corporate limited liability became the norm and an overview of the general academic debate on whether it should be the norm.
The Act states, "Nothing in this Section 1-26 prevents a limited liability company that is not organized under it from electing a charitable or educational purpose in whole or in part for doing business under this act.
The registration procedure of the private limited liability company comprises the following steps: * The articles of association of the company are drawn up.
clients to transfer assets to a single member limited liability company
But the Wyoming limited liability company classification victory was short lived.
Owner enjoys limited liability for business debts and fringe benefits are deductible as business expenses.
Incorporating has become a more serious option, due to many factors, including the demand for technology-related stock; new approaches to compensation packages; near entity-neutral retirement plans and employment taxes; availability of Limited Liability Companies (LLCs) and S Corporations, including Qualified Subchapter S Subsidiaries (QSubs); and the increasing percentage of non- CPA professional employees.
VentureStar will run as a business funded by private capital, self-supporting and returning a profit to its investors,'' according to an announcement about the new limited liability company in the Skunk Works' newsletter, the Star.
The most direct method of converting is simply to liquidate the corporation by transferring the corporate assets to the corporation's shareholders and then have the shareholders contribute the assets to the limited liability company.
Since an LLC by definition already has limited liability, in practice it must lack two of the remaining three traits.
Today, 44 states allow an additional option for business form: the limited liability company (LLC).

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