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Post a RequestLimited Liability Definition
Limited liability – n : legal term; a feature of the
corporate (or corporation) form of organization under which corporate creditors
can make claims only against corporate assets rather than the assets of the corporation’s
owners, officers or directors. This feature is also shared with the LLC form of
organization. Example: All startup companies would be wise to legally form
their business (incorporate or form an LLC) so that the founders and owners can
benefit from the limited liability provisions, shielding their personal assets
from future potential business creditors or legal actions.
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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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