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Antonette would like to form a business but is unsure which legal form would be best...

Antonette would like to form a business but is unsure which legal form would be best for her. Shewould like to have limited liability against creditor claims if the business does not succeed. If thecompany is successful, Antonette does not want the life of the business to be limited to her lifetime.What type of legal form would best fit her needs?

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Answer #1

Limited liability is the best because limited liability is a type of legal structure for an organization where a corporate loss will not exceed the amount invested in a partnership or limited liability company.

When either an individual or a company functions with limited liability this means that assets attributed to the associated individuals cannot be seized in an effort to repay debt obligations attributed to the company. Funds that were directly invested with the company, such as with the purchase of company stock, are considered assets of the company in question and can be seized in the event of insolvency.

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