Legal implication of "limited liability" in business?

[King Belieal]

We always hear about how business get bankrupt and creditors would now have to seize the personal properties of the business owner to recover their debts.

A limited liability company ensures that the business owner or owners are seperated from the business. In the eyes of the law, the business is an entity on it's own. That means if the business goes bankrupt, a creditor can only seize the assets of the business and not the personal properties of the business owner.

That's why you should make your business a limited liability company.

 

[Suba]

We always hear about how business get bankrupt and creditors would now have to seize the personal properties of the business owner to recover their debts.

A limited liability company ensures that the business owner or owners are seperated from the business. In the eyes of the law, the business is an entity on it's own. That means if the business goes bankrupt, a creditor can only seize the assets of the business and not the personal properties of the business owner.

That's why you should make your business a limited liability company.

A business or company can only be said to be bankrupt if it has been decided by a court. Moreover, creditors cannot act directly to confiscate a company's assets, so when a company is declared bankrupt, the curator will take over all the company's assets and determine who must pay the debt first. such as bonds, accounts payable etc. But if you are a shareholder you cannot demand your capital money back.

 

[King Belieal]

A business or company can only be said to be bankrupt if it has been decided by a court. Moreover, creditors cannot act directly to confiscate a company's assets, so when a company is declared bankrupt, the curator will take over all the company's assets and determine who must pay the debt first. such as bonds, accounts payable etc. But if you are a shareholder you cannot demand your capital money back.

The beauty of it all is that your losses is only limited to your capital money as a shareholder. It doesn't extend to your properties. That's the sole beauty of limited liability.