If they aren't Limited Liability Watch

United88
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Let's say a two people set up a business entity, and they aren't limited liability, then what else could they be? Where can I read about the financial records of a practice that is a Partnership?

It's only in Limited Liability where they don't take the full weight of bankruptcy? Everything else, take Partnership for example, they will take the financial hit personally between the two directors?
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Reue
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(Original post by United88)
Let's say a two people set up a business entity, and they aren't limited liability, then what else could they be? Where can I read about the financial records of a practice that is a Partnership?

It's only in Limited Liability where they don't take the full weight of bankruptcy? Everything else, take Partnership for example, they will take the financial hit personally between the two directors?
You wont be able to read the financial records of a partnership, they dont have to publish them.

If a partnership incurs debts, the owners are personally liable for the debt and so could lose personal assets as well.
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391iady
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(Original post by United88)
Let's say a two people set up a business entity, and they aren't limited liability, then what else could they be? Where can I read about the financial records of a practice that is a Partnership?

It's only in Limited Liability where they don't take the full weight of bankruptcy? Everything else, take Partnership for example, they will take the financial hit personally between the two directors?
unlimited liability.
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Runninground
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(Original post by United88)
Let's say a two people set up a business entity, and they aren't limited liability, then what else could they be? Where can I read about the financial records of a practice that is a Partnership?

It's only in Limited Liability where they don't take the full weight of bankruptcy? Everything else, take Partnership for example, they will take the financial hit personally between the two directors?
The clue is in the words - limited liability. This means the companies debt is separate from the directors.

Partnerships and sole traders are unlimited liability. Their business isn't a separate legal entity so any debts incurred by the partnership or sole trader are debts of the owner(s).

Partners in a partnership share debt as agreed in the partnership agreement, in the same ratio that profits are split.

You can't see the financial statements of a partnership because they do not need to be filed.

One way directors of a company can be liable for debts of a company is if they sign a personal agreement. Basically this says if the company can't pay off this loan then you are personally liable to pay it off.
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