Limited liability company definition. Analyzing the definition of key terms often provides more insight about concepts. Limited liability company can be defined as – Organization form that combines select features of a corporation and a limited partnership; provides limited liability to its members (owners), is free of business tax, and allows members to actively participate in management. A limited liability structure attempts to get some of the benefits provided by a corporation and partnership, the LLC limiting liability to the owners like a corporation but also eliminating double taxation by using a flow-through structure like a partnership.
