What is a limited liability company?

What is a limited liability company? Here are some definitions.

Noun (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. Find more words! 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Unless the business is formed as a corporation or a limited liability company, it will be a sole-proprietorship by default. It is expected that the duck will shortly be floated as a limited liability company. Ectotècnia is currently a cooperative and will be transformed into a limited liability company prior to the planned acquisition by Alstom. A limited liability company is subject to the same publishing regulations as a joint stock company. The company is a limited liability company incorporated and domiciled in the Netherlands. See Also What is another word for limited liability company? Sentences with the word limited liability company What is the plural of limited liability company? Nearby Definitions limited liability companies limited-liability limited liability limited liabilities limited company limited companies limitedly limited monarchies limited monarchy limitedness limited overs cricket limited partnership