The Limited Liability Of A Corporation
When a hostile creditor sues the corporation, normally, it can only take the assets of the corporation. The stockholders are generally not liable for the debts, liabilities and acts of the corporation. This is called “limited liability.” This is very different from a partnership, where all partners are liable jointly and severally for everything chargeable to the partnership
|Corporations have stockholders.|
Limited liability companies have members.
The LLC has the limited liability of a corporation.