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Borealidtoday at 2:38 AM1 replyview on HN

As a slight hint, one of the more common types of corporation is an "LLC". LLC stands for Limited Liability Company.

If the company's owners had unlimited liability for problems the company caused, that wouldn't be much of an LLC, would it? The primary purpose of an LLC is to make it so that the owners (often the founders) cannot personally be held responsible for debts the company incurs, even debts incurred through their instructions.

This also includes debts caused by punishment for the company breaking civil contracts, but doesn't make individuals who use the company to break the law immune to criminal charges. But the standard of evidence for prosecuting that type of malfeasance is pretty high...


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JumpCrisscrosstoday at 3:04 AM

> primary purpose of an LLC is to make it so that the owners (often the founders) cannot personally be held responsible for debts the company incurs

It’s more so investors who aren’t involved in day-to-day decision making can invest without worrying that the founders will create liability for them.

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