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Old 09-28-2011, 05:54 AM  
Sly
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Join Date: Sep 2004
Location: Austin, TX
Posts: 31,323
Quote:
Originally Posted by kane View Post
If your business is incorporated and it fails you can declare bankruptcy. If the business goes out of business the creditors will take any and all assets the business has, but as long as you set it up correctly they will not be able to touch your personal assets.

Now I may have overstated things in one area. If you personally do something that is considered reckless and causes the downfall of the company creditors or other investors/shareholders could sue you personally, but they would have to prove that whatever you did caused the destruction of the company.
And what way is "setting up correctly?"

You have to put yourself on the line to get that corporate credit. Companies don't just magically get credit. It comes from somewhere. Personal assurances. You are still responsible for that debt. I am personally responsible for both the taxes and the debt of my corp.

Now if we are talking about a Fortune 500 company that is publicly traded and owns Wall Street... you might have a point. For almost every other corporation, you do not.
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