Frequently Asked Questions Business Organization & Transactions

Business Organization and Transactions

What are the possible consequences of personal liability for business debts and obligations?

Personal liability for business debts and obligations depends on the selection of business entity and can vary greatly. Personal liability for business debts and obligations can arise where a business loses a lawsuit or incurs a debt obligation and the creditor then goes after the personal assets and property of the business owners or members. Certain business entity selections protect owners, members or shareholders from personal liability, while others do not.

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