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Yes. If you are operating a business as a natural person, you remain liable for all, also the debts of your shop. With limited liability the investors are neve
by cies 6y ago
Yes. If you are operating a business as a natural person, you remain liable for all, also the debts of your shop.
With limited liability the investors are never liable for the debts. That's exactly how limited liability shields investors.
- nybble41 6y ago> With limited liability the investors are never liable for the debts. Yes, assuming you meant "shareholders" rather than "investors"—creditors are also investors, having put money into the company with the expectation of a return, but would not be liable for borrowers' debts regardless of limited liability. It's the shareholders who are shielded from liability to the corporation's creditors. But the creditors know this and accept the risk as a cost of doing business with a limited liability corporation. If they don't like the corporation's prospects they are not obligated to extend credit.