Definition: is a private enterprise that can exist in the form of either exclusive ownership or general partnership and whose owner(s) or stakeholders hold an unlimited responsibility for its debts and commitments but have the ability to evade double taxation, which is applied to limited companies. Such enterprises are free from registering their yearly accounts with the public authorities unless they are a subsidiary of a limited company and thus may represent a more desirable business structure depending on the owners’ needs.
In a Sentence:
Mr. Watson has always prioritized keeping his finances hidden, that’s why he opted for opening an unlimited liability company.
Due to the nature of an unlimited liability company, all the stakeholders were responsible for the debts created by Jeff Letho.
I don’t want to share financial responsibility with people I can’t completely trust, that’s why I think we need to go for the unlimited liability company structure even if it means suffering from double taxation.
Synonyms and related words: limited liability company, private firm, general partnership, legal liability, unlimited company