Sentences with phrase «liable for the business debts»

A major disadvantage of doing business as a general partnership is that all partners are personally liable for business debts and liabilities (for example, a judgment in a lawsuit).

If you are a sole proprietor — that is, a person who owns and runs the business — you can still apply for a business credit card, but remember that you are personally liable for your business debts.

One particular risk relates to putting yourself personally liable for your business debts.

Personal Liability As explained above, if your retail business is a sole proprietorship or partnership, you're automatically liable for business debts.

Some retailers are surprised to learn that they're personally liable for business debts.

Here, each partner is personally liable for the business debts incurred by other partners.

If you form this type of entity, members of the company are not held personally liable for business debt or liability (in most cases).

A corporation means the business, not business owners, are liable for business debts.

Not exact matches

Perhaps the biggest drawback is that each partner is jointly and severally liable for the debts and obligations of the business.

Theoretically, no owner of an incorporated business can be held personally liable for the debts, obligations, or acts of the company.

By incorporating your business as an S - corporation, you also protect yourself against being personally liable for corporate debts.

However, you can be held personally liable for all the debts and liabilities of the business, and this could put your personal assets at risk.

Limited Liability Company (LLC)-- A structure that designed to protect members of a business from being liable for company debt.

When owners are personally liable for the effects of what the business does, and for paying the debts the business incurs, their relation to the business are much closer.

If you sign a personal guarantee for your business credit cards, as almost all require, you're liable for the company's debt should your business miss payments.

When a business credit card account is opened, a personal guarantee is when an officer of the corporation designates himself and is bound by contract to be liable for all debts incurred on the new credit card.

So even if you use the cash for business expenses, you still will be personally liable for the debt.

If the LLC maintains its separation from the personal affairs of the member, LLC members are only liable for the debts of the business entity to the extent of their personal contribution.

For example, a Sole Trader will be personally liable for all the business debts, which are treated no differently to their personal debFor example, a Sole Trader will be personally liable for all the business debts, which are treated no differently to their personal debfor all the business debts, which are treated no differently to their personal debts.

Once the investigation is conducted, the credit bureau should find that you are indeed not liable for the debt and then purge all evidence of the ugly business from your history.

Keep in mind, if your business is set up as a sole proprietorship or partnership, the owners are personally liable for all business matters including debts.

Remember, if you have personally guaranteed a business debt — many lenders require that a small business owner take on personal responsibility for loans or lines of credit — you will still be liable for those obligations, unless freed by your creditors.

In most cases, the owner is personally liable for those debts and, because his business is now closed, he is without a personal income to pay those debts.

Business credit card offers with joint and several liability means that both you and your business are liable for debts, so you would have personal liBusiness credit card offers with joint and several liability means that both you and your business are liable for debts, so you would have personal libusiness are liable for debts, so you would have personal liability.

-- If you, the business owner, signed a personal guarantee to get your card, you are liable for the debt... (See Business credit cabusiness owner, signed a personal guarantee to get your card, you are liable for the debt... (See Business credit caBusiness credit card debt)

The courts are very cautious to hold business owners or shareholders liable for the debts of their business.

Owners of sole proprietorships and partnerships remain fully liable for the debts and obligations of their businesses, but those who own corporations are not personally responsible for business debts.

The owner will be liable for debts incurred by the business.

You will not be personally liable for the debts and judgements against your business.

In the first case, the person is liable for all the debts of the business, in the second case, providing they have fulfilled the legal duties as am owner / director (as applicable) they are not liable for the debts of the company.

However, note that the protection isn't perfect, and in certain circumstances you may become personally liable for the debts incurred by the business.

General partners: Owners of a partnership who are responsible for the management of the partnership, receive a share of the partnership's profits and losses, and who are personally liable for the actions of the other partners and the debts of the business.

Of course, this has its disadvantages, as you are personally liable for the debts your business incurs.

Recently, Orr & Brown obtained a jury verdict of over $ 500,000.00 on behalf of a local business client in a case involving complex legal issues, defeated a claim brought by a large materials supplier that a former corporate officer was personally liable for the debt of a defunct corporation based on a signed personal guaranty, and successfully negotiated a high - profile «business divorce» between 2 owners of a very lucrative and profitable North Georgia business.

When representing a tenant client, why is it better to negotiate personal guaranty — which makes the business owner personally liable for debts and obligations — out of a lease in place of a larger security deposit or extra limitations?

If you're a small business owner and you operate in your own capacity — in other words, as a «sole proprietorship» — you are personally liable for all of the debts and obligations of the business itself; if your business fails, you go under with it.