The point of a Limited Company is that people who own and work for the company are not held responsible for the actions of the company. Exceptions apply, of course. This is done to protect people from the failures of the business. If the company you work for goes bankrupt for whatever reason, you don’t want to owe millions to the creditors of the company out of your pocket.
Limited Liability Company just means there aren’t any shareholders. Only the owner can be held to account and/or will lose money if the business goes under.
Every trucker that owns their own vehicle/routes is running an LLC and it isn’t so they can be protected from the failure of their business, it’s because they’re the only ones who will be impacted if the company goes under.
Source: I was an Owner-Operator and had to learn this terminology when setting up my LLC.
The point of a Limited Company is that people who own and work for the company are not held responsible for the actions of the company. Exceptions apply, of course. This is done to protect people from the failures of the business. If the company you work for goes bankrupt for whatever reason, you don’t want to owe millions to the creditors of the company out of your pocket.
Limited Liability Company just means there aren’t any shareholders. Only the owner can be held to account and/or will lose money if the business goes under.
Every trucker that owns their own vehicle/routes is running an LLC and it isn’t so they can be protected from the failure of their business, it’s because they’re the only ones who will be impacted if the company goes under.
Source: I was an Owner-Operator and had to learn this terminology when setting up my LLC.