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Fordham Law Review Volume 36 Issue 2Article 41967With Limited Liability For All: Why Not a Partnership Corporation? Robert A. KesslerRecommended Citation Robert A. Kessler, With Limited Liability
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Limited liability is a legal status where the liability of the owners or shareholders of a company is limited to the amount of their investment in the company. This means that the personal assets of the owners are not at risk in case of business debts or lawsuits.
Companies and businesses that wish to operate with limited liability must file the necessary paperwork with the appropriate government authorities to establish this legal status.
To establish limited liability for a company, owners or shareholders typically need to file articles of incorporation or organization with the state where the company is registered. This paperwork outlines the structure of the company and the limited liability protections.
The purpose of limited liability is to protect the personal assets of the owners or shareholders of a company from being used to satisfy business debts or legal claims.
The paperwork filed for limited liability typically includes information about the company's ownership structure, business activities, and registered address.
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