4 ms·

Nobody will give a small limited liability company any serious credit line or similar. In practice you still are liable with your personal belongings to any rel

• mschuster91 10y ago
  > Also, if you think that there is no personal liability for the managing founder in a limited liability company, don't search for "Geschäftsführerhaftung" or you are going to have a bad day. This is not a German exclusive. Managers of a company are nowhere shielded from legal responsibility when they violate the criminal code. (Okay, big banks maybe not, but at least from the letter of the law...)
  • germanier 10y ago
    I'm not well versed in other countries' laws but you are right of course. My comment was intended to be seen in this direction: For small companies (let's say up to a few employees) almost all relevant risks of liability for the founder exist equally in both unlimited and limited liability companies. There are very few cases were the shield of a limited liability company is beneficial. An insurance is ofter a cheaper way of getting that. Also, a significant customer with a competent lawyer will ensure that all contracts with a small just-started business will include a personal liability clause. That supermarket down the street? Almost surely run by a fully liable merchant. That consulting office next door? A fully liable partnership. This two-person software company? Both owner fully liable. It's a common choice and often better suited than it might sound at first.