It is where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership.
Limited liability is where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership. By contrast, sole proprietors and partners in general partnerships are each liable for all the debts of the business (unlimited liability). Although a shareholder's liability for the company's actions is limited, the shareholders may still be liable for their own acts. A type of liability that does not exceed the amount invested in a partnership or limited liability company. The limited liability feature is one of the biggest advantages of investing in publicly listed companies. The limited liability feature protects the investor's or partner's personal assets from the risk of being seized to satisfy creditor claims in the event of the company's or partnership's insolvency. A Limited Liability Company (LLC) is a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC, although a business entity, is a type of unincorporated association and is not a corporation. It is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. An LLC is not a corporation; it is a legal form of a company that provides limited liability to its owners in many jurisdictions. A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or liable for another partner's misconduct or negligence. In an LLP, some partners have a form of limited liability similar to that of the shareholders of a corporation. In some countries, an LLP must also have at least one thing called as a general partner with unlimited liability. Unlike corporate shareholders, the partners have the right to manage the business directly. LLC or Limited Liability Company is a company that is a flexible form of a company that incorporates parts of a partnership and corporation. This type of company gives the owners limited liability in most parts of the United States.  A shareholder in a limited company is not personally liable for any of the debts of the company, other than for the value of their investment in that company. By contrast, sole proprietors and partners in general partnerships are each liable for all the debts of the business (unlimited liability). Although a shareholder's liability for the company's actions is limited, the shareholders may still be liable for their own acts. The same is true for the members of a limited liability partnership and the limited partners in a limited partnership. By contrast, sole proprietors and partners in general partnerships are each liable for all the debts of the business (unlimited liability). Although a shareholder's liability for the company's actions is limited, the shareholders may still be liable for their own acts. For example, the directors of small companies (who are frequently also shareholders) are often required to give personal guarantees of the company's debts to those lending to the company In a partnership, the limited partners have limited liability, while the general partner has unlimited liability. The limited liability feature protects the investor's or partner's personal assets from the risk of being seized to satisfy creditor claims in the event of the company's or partnership's insolvency. Next Up
https://en.wikipedia.org/wiki/Limited_liability http://www.investopedia.com/terms/l/limitedliability.asp https://en.wikipedia.org/wiki/Limited_liability_company https://en.wikipedia.org/wiki/Limited_liability_partnership http://www.justanswer.com/topics-llc/ https://en.wikipedia.org/wiki/Limited_liability https://en.wikipedia.org/wiki/Limited_liability http://www.investopedia.com/terms/l/limitedliability.asp
why limited liability is a problem