In all honesty, a basic acknowledgement that this person isn't being hired and thanks for their interest in working for the company is about the best you can do if your highest priority is avoiding legal liability.
But if you put that person through a prolonged interview process that involved essentially retyping their resume into your ATS system along with multiple callback interviews, assessments, and other criteria, then, also in all honesty, limiting yourself to whatever helps you avoid legal liability also comes off as jerking them around too much because it's too curt. You're in a no-win situation.
Two things that don't help in any circumstances:
1) Smarming. Don't go overboard in mentioning what a great candidate the applicant was, how qualified they are or how hard your hiring decision was. None of that resulted in a job offer from your company, so it comes off as insincere.
2) Wishing them future success. You already delayed if not denied that by not extending them an offer, so expressing this doesn't come off well.
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