limitedliability
Limited liability is a legal principle whereby the financial risk of the owners of a business is limited to the amount they have invested in the entity, with personal assets protected from business debts and claims. The concept rests on the idea that the business itself is a separate legal person, distinct from its owners.
The most common vehicles offering limited liability are corporations (also known as companies), limited liability companies
The protective barrier is sometimes referred to as the corporate veil. Courts may pierce the veil to
Limited liability affects taxation and governance. Some entities offer pass-through taxation, where income is taxed at
While widely adopted worldwide, limitations and definitions vary by jurisdiction. In some systems, certain professionals and