Limited liability (LL) is liability that is limited to a partner or investor's investment. Shareholders in a corporation cannot lose more money than the value of their shares if the corporation runs into debt, as they are not personally responsible for the corporation's obligations. The same is true for partners in a limited liability partnership and the limited partners in a limited partnership. This is in contrast to sole proprietorships and general partnerships, in which the owner or partners are each liable for business debts (unlimited liability or UL).
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