Oh, you can owe money you personally guaranteed. You're also jointly and severally liable in a general partnership. LLCs are nice in that you can have the tax b

Oh, you can owe money you personally guaranteed. You're also jointly and severally liable in a general partnership. LLCs are nice in that you can have the tax benefits of a partnership and the liability protection of a corporation if set up correctly. This 'corporate veil's only puts the value of the money that you put into the corporation at risk i.e. the value of your investment. However, certain actions could 'pierce' the corporate veil if the LLC is setup incorrectly or if certain conditions are met. From an accounting standpoint, GAAP doesn't much care if you're a private company with shareholders or if you're a private company with employee-owners. There are tax nuances and accounting for equity differences, but the books are mostly the same animal.