limited liability

USAGE SUMMARY

"limited liability" is correct and usable in written English.
It can be used to refer to a situation in which the loss a person or business incurs is limited to a fixed amount. For example, "The company's limited liability protects each shareholder from losing more than the amount of money they invested in the company."

✓ Grammatically correct

News & Media

Wiki

Science

Human-verified examples from authoritative sources

Exact Expressions

52 human-written examples

To avoid estate taxes, farm families need to wrap their assets in trusts, limited liability companies and limited liability partnerships.

HuffPost

It's limited liability.

Yale University

What is this private or public limited liability?

The New York Times

(For instance, they featured limited liability for passive investors).

The New Yorker

Andersen in America is a limited liability partnership.

The Economist

Partnerships can now offer limited liability and issue tradable shares.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

5 human-written examples

The buyer was a limited-liability company.

The New York Times

The anonymous buyer used a limited-liability company, TessAnnieK.

The New York Times

The buyer was listed as a limited-liability company.

The New York Times

In fact, it is a limited-liability company.

The Washington Post

Most large industrial and commercial organizations are limited-liability companies.

Britannica

Expert writing Tips

Best practice

When forming a business, carefully consider whether a structure offering "limited liability" is appropriate for your risk profile and long-term goals. Seek professional legal and financial advice to make an informed decision.

Common error

Don't assume that "limited liability" provides absolute protection. It doesn't shield against personal wrongdoing, negligence, or breaches of contract. Ensure you understand the specific limitations and maintain proper business practices.

Linguistic Context

The phrase "limited liability" functions as a noun phrase, typically used to describe a legal and financial concept. Ludwig's examples illustrate its use in defining business structures and protecting personal assets.

Expression frequency: Very common

Frequent in

News & Media

45%

Wiki

22%

Science

11%

Less common in

Academia

9%

Formal & Business

7%

Encyclopedias

6%

Ludwig's WRAP-UP

The phrase "limited liability" is a very common noun phrase used to describe a legal concept where an individual's financial responsibility is capped, commonly in business contexts. As Ludwig AI confirms, it is grammatically correct and widely used. The phrase is most prevalent in News & Media, Wiki, and Science sources, demonstrating its relevance across various domains. When using the phrase, remember that while it offers significant protection, it's not absolute. Alternatives such as "liability protection" or "liability limitation" can provide similar meaning with slight variations in emphasis.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

liability limitation

Directly refers to the act or process of limiting liability.

restricted liability

Similar to limited, but can suggest more stringent limitations.

liability protection

Focuses on the protective aspect, implying shielding from responsibility.

capped liability

Highlights that the liability amount has an upper limit.

personal liability protection

Specifically emphasizes protection for personal assets from business liabilities.

corporate veil

Metaphorical term for the separation between a corporation and its owners.

corporate shield

Implies a barrier that protects individuals from corporate liabilities.

ring-fenced liability

Emphasizes the isolation and containment of liability within specific boundaries.

asset protection

Focuses on safeguarding assets from liabilities and claims.

financial safeguard

Broader term indicating measures to protect finances, including limiting liability.

FAQs

How does "limited liability" protect business owners?

"Limited liability" protects business owners by ensuring that their personal assets are not at risk if the business incurs debts or faces lawsuits. The owner's liability is typically limited to the amount of their investment in the business.

What are some common business structures that offer "limited liability"?

Common business structures that offer "limited liability" include "limited liability companies" (LLCs), S corporations, and C corporations. Each has different requirements and implications.

What are the advantages of operating a business with "limited liability"?

The advantages of "limited liability" include personal asset protection, increased credibility with lenders and investors, and a clear separation between personal and business finances.

Are there situations where "limited liability" does not apply?

Yes, "limited liability" does not apply in cases of personal guarantees, fraud, illegal activities, or failure to follow corporate formalities. In such cases, owners may be held personally liable for business debts or damages.