limited liability

noun

: liability (as of a stockholder or shipowner) limited by statute or treaty

Examples of limited liability in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Businesses use structures like limited liability companies (LLCs) or S corporations to pass income through to the owners without paying tax at the company level. Kelly Phillips Erb, Forbes.com, 4 July 2025 That land is owned by a limited liability company, owned by Dr. Emad Zaki of Paradise Valley. Raphael Romero Ruiz, AZCentral.com, 3 July 2025 Musk purchased the home in 2022 through a limited liability company named after the street where the property is located. Brandi D. Addison, Austin American Statesman, 2 July 2025 The limited liability company has quietly been purchasing multiple properties over the past year as the Simon family, the owner of the Indiana Pacers, has been rumored to be involved in a speculative MLS ownership group. Alysa Guffey, IndyStar, 2 July 2025 See All Example Sentences for limited liability

Word History

First Known Use

1848, in the meaning defined above

Time Traveler
The first known use of limited liability was in 1848

Cite this Entry

“Limited liability.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/limited%20liability. Accessed 10 Jul. 2025.

More from Merriam-Webster on limited liability

Last Updated: - Updated example sentences
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