What is limited liability?

Limited liability is one of the legal forms (or structures) that a company can have. A company that is registered as a limited liability company (LLC or LTD in the UK), is a separate legal entity (legally separate from it’s owners). Corporate law uses a term, the corporate veil, which basically describes the fact that companies that have limited liability are completely separate from it’s owners and the owners are only liable up the capital contribution they have made.