A liability is a financial obligation or debt owed. Liabilities are key elements on every company’s balance sheet, and therefore, important to stock and bond investors. Learn more. In finance and ...

A limited liability company (LLC) limits the potential for its members to be personally liable for the LLC's business debts. It features pass-through taxation.

Liability constitutes an important, and oftentimes ruinous, aspect of business. Small businesses in particular may face complete collapse in the face of a liability lawsuit. Various types of liability ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Michael Logan is an experienced writer, producer, and editorial leader. As a journalist, he ...