In a sole proprietorship, the owner is responsible for the debts of the business if the firm is unable to pay true are false
2007-01-22 05:32:13 · 4 answers · asked by Anonymous in Business & Finance ➔ Corporations
True.
2007-01-22 05:39:27 · answer #1 · answered by chio 3 · 0⤊ 0⤋
You may want to consider the the benefits of an LLC or "S" Corp structure as both can help limit your liability exposure over "Sole Proprietor". You really have a partnership so take advantage of the tax code and reduce your personal liability at the same time. You should contact a local attorney that specializes in helping entrepreneurs to get the legal perspective on your question. Good luck.
2016-05-23 21:55:12 · answer #2 · answered by Cynthia 4 · 0⤊ 0⤋
True.
Even if you Incorporate your company, you may still be liable. One example is a bank asking you to guarantee a loan because they won't lend money to a new company.
2007-01-26 03:29:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
100% TRUE!!!
2007-01-22 09:52:39 · answer #4 · answered by Chris P 3 · 0⤊ 0⤋