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Limited Liability Company to a Corporation Form

Limited Liability Company to a Corporation Form

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Instructions and help about Limited Liability Company To A Corporation

Limited liability is one of the key attributes of corporations and other business entities like LLCs. Limited liability means that the shareholders are not liable for the obligations of the business entity. Creditors, tort creditors or contractual creditors of the corporation can sue the corporation to be made whole, but they cannot sue the owners of the corporation. Limited liability is key to the development of large scale enterprise. Enterprises can't finance themselves solely with debt. To get to the scale of enterprise and the level of risk in enterprise that we see today in large scale enterprises, but you see throughout the industrial era, through the expansion into the Western world, in which corporations were used to finance expeditions, you have to have some element of equity investment, of people who are taking a chance, they don't have the protections of a creditor. They're taking a chance on the enterprise and hoping to see profit from its success.

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