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TeachMeFinance.com - explain Limited liability company historic definition... Limited liability company -- One in which stockholders are individually limited in their liability for the company's debts to the amount of stock that they hold ; in other words they can lose only what they have paid for their stock. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.