limited liability companylimited liability company
- A business structure that has pass-through taxation (owners declare business income and losses on personal tax returns) is an example of a limited liability company.
- A business structure that has protection from personal liability for partners is an example of a limited liability company.
The definition of a limited liability company, or LLC, is a type of business structure that incorporates some features of a partnership and some features of a corporation.
limited liability company
A company managed by members or elected managers, like a partnership, but with the liability of the members limited to the amount of capital they have invested in the business.
(plural limited liability companies)
- (law) A type or form of for-profit incorporated company where ownership is divided into shares, and where the governing rules are set forth in a contract entered into by all of the initial shareholders. The name derives from the fact that regardless of potential losses or even bankruptcy of the corporation, individual shareholders will bear a maximum liability of the price they paid for their shares.