When you are the shareholder or owner of a corporation (Inc.) or limited liability company (LLC.), there’s no personal liability for individual shareholders in case of company’s default or lawsuit. These company entities shield you from personal liabilities. Contrary to partnership or sole proprietorship, liabilities can be traced all the way to owner at the personal level. It is important to set up your company the right way and have yourself shielded from possible demise stemmed from company failures.
