Nolo's Plain-English Law Dictionary

Legal Dictionary Home

Limited Liability
A feature of corporations and LLCs where the business owners are legally responsible for paying business debts, claims, and judgments only to the extent of the capital they invested in the business. This means that if the business folds, creditors cannot seize or sell the business owner's home, car, or other personal assets.
LA-NOLO1:LEADS.1.1.0.1.20150716.32264+