Limited Liability is a GREAT thing. It allows us to build businesses that serve society that we wouldn't otherwise. Would you start a company or invest in one if you could lose all your personal wealth? Few would.
Most companies are limited liability. All companies that would bid on project would be limited liability. Why do you think this project is special enough that the owners should be liable?
Also, LLC in US is kind of company. It is mostly used for small sole proprietorships and partnerships. Technically, public companies are “limited by shares” where shareholders are liable up to value of their shares. But there is no difference in terms of protecting owners from liability so they are called limited liability.
Why not? As long as they don't do anything that causes harm then the company isn't in danger. If they think it's likely they would cause harm, well then obviously they shouldn't exist.
The potential liability for any company is big enough that limited liability is necessary. No one would start company if they could lose all their assets not just ones invested in company.
Are people confused that limited liability limits the liability of the company? Because limited liability means that the liability of the owners is limited to their investment. The company can go bankrupt from losing lawsuit.
Limited Liability is a double-edged sword. It does reduce the risk of starting a company. But it reduces some mechanisms to protect society from misbehaving companies.
Thats exactly the issue