limited liability companynoun
Wiktionary (English) • 2026
Wiktionary contributors (https://en.wiktionary.org/wiki/limited_liability_company#English) • CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/) • via Kaikki (https://kaikki.org/dictionary/English/)
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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.
