6 ms·

Short answer: yes, but. Without consequence, of course not. But you should be able to 'separate' your professional and personal life, even as an entrepreneur.

Short answer: yes, but. Without consequence, of course not. But you should be able to 'separate' your professional and personal life, even as an entrepreneur. I would NEVER found my own business if I knew that going bankrupt would take away my kid's house. This is why instruments such as limited responsibility companies have been invented.

jeffreygoesto 2y ago
Knew a guy who tried to outsmart tax rules and founded the company as his wife's. Also had a big mortgage on their house. She fell in love with the local butcher (no joke) and one afternoon they emptied the bank account and flew to Goa. That guy lost his wife, his company and his house in one afternoon and went straight to ER with a heart attack.
- WalterSear 2y ago
  And his butcher.
  - filoleg 2y ago
    That too. Doesn’t seem like a big deal, but I imagine if you have your own butcher in the first place, you are somewhat particular and specific about what you want (kind of similar to a lot of people clinging onto their usual hair stylist/barber for their dear life, once they find one that does things the way they like). And I would bet that the number of barber options around would be much larger than that for butchers.
PurpleRamen 2y ago
> But you should be able to 'separate' your professional and personal life, even as an entrepreneur. Why? In case of success, you have the personal benefit from it. So why should other people and society take the bill in case of your fail? Or how exactly is this supposed tor work?
- bende511 2y ago
  If I go to open a restaurant and I can convince a bank to lend me capital to start the business, and then it fails, I can see an argument for why they shouldnt lend me money to open a second restaurant, at least not right away. But why should I be penalized in personal life for a business failing. Should the bank get to take my house if my restaurant fails? Should I be prevented from getting a credit card?
  - PurpleRamen 2y ago
    Where is the money coming from? And who should pay the bill you have left, when you fail? It will not disappear, and for the health of the system it can't disappear, so where is it going?
    - bende511 2y ago
      well, thats the risk the bank takes when they lend my business the money, that I might not be able to pay it all back. they eat the loss, minus whatever they can recover from assets left over. and I get a mark that says you should think twice before lending me money for a restaurant again. but my life isnt ruined. i get to keep my house, i can still participate in financial society. the alternative is, as someone else pointed out, only those with lots of resources can afford to try to create new businesses. the US policy is that its worth it to have a more lenient bankruptcy process, with more bankruptcies that are less ruinous, since it leads to more risk taking (ie new business formation).
      - PurpleRamen 2y ago
        In Germany, your life is not ruined if you go bankrupt and have to pay for the fail you created. Society still gives you shelter, food, healthcare, even if you have lost your luxury. So there is no reason to make wasting resources and harming society simple.
        bende511 2y ago

jeffreygoesto 2y ago

Knew a guy who tried to outsmart tax rules and founded the company as his wife's. Also had a big mortgage on their house. She fell in love with the local butcher (no joke) and one afternoon they emptied the bank account and flew to Goa. That guy lost his wife, his company and his house in one afternoon and went straight to ER with a heart attack.

WalterSear 2y ago
And his butcher.
- filoleg 2y ago
  That too. Doesn’t seem like a big deal, but I imagine if you have your own butcher in the first place, you are somewhat particular and specific about what you want (kind of similar to a lot of people clinging onto their usual hair stylist/barber for their dear life, once they find one that does things the way they like). And I would bet that the number of barber options around would be much larger than that for butchers.

PurpleRamen 2y ago

> But you should be able to 'separate' your professional and personal life, even as an entrepreneur. Why? In case of success, you have the personal benefit from it. So why should other people and society take the bill in case of your fail? Or how exactly is this supposed tor work?

bende511 2y ago
If I go to open a restaurant and I can convince a bank to lend me capital to start the business, and then it fails, I can see an argument for why they shouldnt lend me money to open a second restaurant, at least not right away. But why should I be penalized in personal life for a business failing. Should the bank get to take my house if my restaurant fails? Should I be prevented from getting a credit card?
- PurpleRamen 2y ago
  Where is the money coming from? And who should pay the bill you have left, when you fail? It will not disappear, and for the health of the system it can't disappear, so where is it going?
  - bende511 2y ago
    well, thats the risk the bank takes when they lend my business the money, that I might not be able to pay it all back. they eat the loss, minus whatever they can recover from assets left over. and I get a mark that says you should think twice before lending me money for a restaurant again. but my life isnt ruined. i get to keep my house, i can still participate in financial society. the alternative is, as someone else pointed out, only those with lots of resources can afford to try to create new businesses. the US policy is that its worth it to have a more lenient bankruptcy process, with more bankruptcies that are less ruinous, since it leads to more risk taking (ie new business formation).
    - PurpleRamen 2y ago
      In Germany, your life is not ruined if you go bankrupt and have to pay for the fail you created. Society still gives you shelter, food, healthcare, even if you have lost your luxury. So there is no reason to make wasting resources and harming society simple.
      - bende511 2y ago