4 ms·
more or less, yes. bankruptcy courts vary by location. the whole point of a 'limited liability corporation' is you not being personally liable. BUT if you have
by mushufasa 7y ago
more or less, yes. bankruptcy courts vary by location. the whole point of a 'limited liability corporation' is you not being personally liable.
BUT if you have 'malicious intent' -- meaning you build an llc on purpose to overrun costs and get free stuff, you CAN and WILL be sued and face penalties. cause that's just cut-and-dry fraud.
- tluyben2 7y agoCompanies are doing this all the time and not prosecuted (or prosecuted and not found guilty); they just do not make it obvious. So the ‘will’ is not that cut and dry really; even in countries where bankruptcies are not normal and frowned upon (like NL), there are many companies only created to spend money and killed off when it runs out. On paper they look like real businesses. Also it is not unusual to put employees in a separate llc and kill that when the money runs out; again that happens a lot, even with the intent of doing that. As long as it looks good on the outside, it works. I cannot stand it personally but there are not many solutions to resolve it; you cannot read the minds of the founders to get their real intentions.