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That logic ignores the potential criminality of the activity. If a bunch of robbers incorporate an LLC, would you want to limit their liability to their tools a
by ssivark 5y ago
That logic ignores the potential criminality of the activity. If a bunch of robbers incorporate an LLC, would you want to limit their liability to their tools and the getaway vehicle so the LLC can “declare bankruptcy”? Those sponsoring the “enterprise” will at the very least be charged as accessories.
Limited liability is not about, and has many asterisks before it applies.
- jacobr1 5y agoSure, it's "limited" liability, not "no" liability. And criminal actions remove even the limited part. But it isn't clear to me that the owners having criminal liability was the basis the bankruptcy court was operating under ... though it is clear both side thought it was the way things _could_ go, so they preempted that state.