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Q: Does LLC or Inc. allow the organization to take the hit (or fold) while leaving the founders relatively safe?
by libria 13y ago
Q: Does LLC or Inc. allow the organization to take the hit (or fold) while leaving the founders relatively safe?
- aioprisan 13y agoYes, that's the entire point, it shields you from all liability. If you perjure yourself, you're still personally liable, but for things such as money owed by the business, you're not personally liable unless if you personally guarantee something (i.e. a company credit card that you guarantee with your social).
- tehwebguy 13y agoYes, that is the point of them. If you are planning on creating one you should speak with an accountant and attorney to make sure you know the rules. If a corp or LLC is being used simply as a front a suing party can "pierce the corporate veil" and come after you personally.
- Retric 13y agoThat only works if the company signs a contract, if you sign so pretending that says you can be held accountable then you can be held accountable. Most often seen with loans.