IMPORTANCE OF ENTITY PROTECTION – LIMITED PERSONAL LIABILITY
Why sole proprietorships and general partnerships offer no protection at all.
A sole proprietorship is a type of business entity which legally has no separate existence from its owner. As such, the limitations on liability enjoyed by corporations, LLCs, and LPs do not apply to sole proprietors. All debts of the business are debts of the owner since he or she retains no partners.
Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.
Why sole proprietorships and general partnerships offer no protection at all.
A sole proprietorship is a type of business entity which legally has no separate existence from its owner. As such, the limitations on liability enjoyed by corporations, LLCs, and LPs do not apply to sole proprietors. All debts of the business are debts of the owner since he or she retains no partners.
Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.
No comments:
Post a Comment