If a small business that declares bankruptcy is a corporation or LLC, the owner's personal assets are not affected.

Question

Quizplus · Accepted Answer

In a corporation or LLC, the business is a separate legal entity from the owner. Therefore, the owner's personal assets are generally not at risk if the business files for bankruptcy. However, there may be exceptions if the owner personally guaranteed business loans or engaged in fraudulent or illegal activities.

If a Small Business That Declares Bankruptcy Is a Corporation