limited liability

**Limited Liability**

Limited liability is a legal structure that protects business owners by limiting their personal financial responsibility for the debts and obligations of the company. This means that, in most cases, owners or shareholders are only liable up to the amount they have invested in the business, safeguarding their personal assets from being used to cover business liabilities. Limited liability is a key feature of corporate entities such as corporations (Inc.) and limited liability companies (LLCs), making it a popular choice for entrepreneurs seeking to reduce financial risk while running a business.