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Impact of Liability on Structuring and Funding Decisions

April 13, 2006

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When choosing your organizational form, there are two types of liability to consider in deciding how to structure and fund what will be your most likely entity choices--the limited liability company (LLC) or corporation:

• liability for business debts (i.e., debts that arise from business transactions)
• liability for personal debts (i.e., debts incurred from activities outside of the business entity).

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