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German here. I am mulling over the type of business because I want to grow a B2B company where there is potential for loss of service for a big corporate custom
by heipei 7y ago
German here. I am mulling over the type of business because I want to grow a B2B company where there is potential for loss of service for a big corporate customer, and my fear is getting hit with a justified (or frivolous) lawsuit that will wipe me out.
So, to come back to your comment: Is there ever a situation where you as a solo-founder/owner would consider a limited-liability corp (GmbH/UG) for reasons of liability or are the only good reasons for such a corp to be able to employ people, take in outside investments and set up something like a holding structure?
- WA 7y agoI honestly can’t answer that, because I’m not in the B2B sector. Some people wouldn’t do anything without a GmbH. They say it’s an absolute necessity. Others see it differently. I just want to add to this discussion: Think about risks and insurance first and then about limited liability. If you think about it: what actually happens to your company if a scenario happens that triggers the limited liability aspect? It goes bust, if I’m not entirely mistaken. Every asset will be seized, except for your personal assets. But the company is basically gone afterwards. This scenario should be avoided in any case I think. It’s probably not fun. I can only say that in my case with many independent customers paying a small amount of money, I managed my risk with insurance as far as possible. But maybe an accountant would be the better person to discuss your individual case.