Okuzeka
Contract & Commercial Law vocabulary · Companies & Partnerships

Limited liability company

Meaning in contract & commercial law, with examples

nounCore term

In contract & commercial law, limited liability company means: A company whose owners are responsible for its debts only up to the amount they have invested, so their personal assets are protected.

In Turkish: limited şirket, sınırlı sorumlu şirket

How it is used

In the US, the 'LLC' is a specific and flexible business form. In the UK the usual equivalent is the 'private limited company' (Ltd). In Turkey the closest forms are the limited şirket (Ltd. Şti.) and, for larger businesses, the anonim şirket (A.Ş.).

Example sentences

  1. They set up a limited liability company in Delaware for the US business.

  2. As members of a limited liability company, they are not personally liable for its debts.

Common collocations

  • form a limited liability company
  • members of the LLC
  • LLC operating agreement
  • single-member LLC
  • companyA business organisation registered as a separate legal person, so it can own property, sign contracts and sue or be sued in its own name.
  • incorporateTo form a company as a separate legal entity by registering it with the authorities; in contracts, also to make terms from another document part of the agreement.
  • liabilityLegal responsibility for something, especially the duty to pay compensation for loss or harm; in accounting, also a debt that a business owes.
  • partnershipA business run by two or more people who share its profits and, in a general partnership, are personally responsible for its debts.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Companies & Partnerships

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This page explains English vocabulary for learners. It is not legal advice.