Limited LiabilityLimited Liability

Limited liabilityLimited liability means means the owners or the owners or shareholders only lose shareholders only lose the value of their the value of their investment in the investment in the business if the business if the business goes business goes bankrupt.bankrupt.

They are not They are not personally liable for personally liable for any debts of the any debts of the company.company.

Next slide

The Perks of Limited LiabilityThe Perks of Limited Liability

I will never I will never lose my lose my brand new brand new penthouse!penthouse!

Next slide

Separate legal entity.Separate legal entity.

Separate legal Separate legal entityentity means that means that the owners of a the owners of a particular company particular company cannot be taken to cannot be taken to court and sued. court and sued. Instead it’s the Instead it’s the company itself gets company itself gets taken to court and taken to court and sued and held sued and held responsible.responsible.

Next slide

The Perks of Separate Legal EntityThe Perks of Separate Legal Entity

The company goes The company goes to court not me the to court not me the Shareholder.Shareholder.

And not me the And not me the Director.Director.