In an LLC,the business,not the owners,is responsible for the corporation's debts.

Question

Quizplus · Accepted Answer

One of the benefits of forming an LLC is that the business is considered a separate legal entity from its owners, which means that the business, not the individual owners, is responsible for any outstanding debts or liabilities. However, it's important to note that there are exceptions to this, such as if the owners personally guarantee a loan or if they engage in illegal or fraudulent behavior that causes the business to incur debt.

In an LLC,the Business,not the Owners,is Responsible for the Corporation's