We're talking about a limited liability company. That is the common understanding. That the liability of the company is limited to the assets of the company. Which is why so many people think its a good idea to operate their business through a company, and why most large businesses operate through companies.
It all makes sense so far. I mean, why would you put all your assets at risk when you can operate through a separate legal entity, and then if something goes wrong it'll all be okay. They'd have to chase the company, not you.
The problem with all of this is that, yes, the liability of the company is limited to the assets of the company. But there are some fairly major asterixes to throw in at this stage.