Am I Personally Liable For Business Debts?
Personal debt or business debt, if not managed well, can prove to be a nightmare, and we all agree to this, don't we? But are you personally liable for business debts? This question pops in every business owner's mind who is in debt or is about to take a loan. So, understanding the classification of the debt and its implications is extremely important, be it for individuals or business owners. Whether you are liable for business debts or not depends solely on the nature of the loan and the structure of the company. Let’s uncover all the information in this detailed article. The nature of the Debt and the Business Formation You must be aware that there are various types of loans available for different purposes, for example, home loan, business loan, property loan, medical loan, etc. and how it will be recovered depends on the type. Even a credit card is a type of debt that you need to repay timely. The second important factor is the business formation and its structur...