Frequently Asked Questions: Business Law
What is limited liability?
Limited liability is the legal concept that the owners of an incorporated business are not personally responsibility for the debts, obligations, or liabilities of the business. The liability of the business is therefore limited to the assets of the business and the owners’ personal assets (house, car, etc,) are not exposed. There are exceptions to this protection, for example: when the owners fail to treat the business as a separate entity, fail to comply with state requirements, intentionally act in bad faith, or themselves negligently cause injury or damage to others.