If my small business files bankruptcy or gets into trouble, am I personally liable?

Babette Deloe: I think if this is even on your mind before you begin then you do not have what it takes to be a entrepreneur. Sorry but the cold hard facts are you must go into your business with the passion to succeed and not let anyone get in your way. The entrepreneurs I am friends with and myself never thought for a second about failure! Read my profile, I have over 35 years experience at this.But if you are already setting yourself up for failure the answer to your question is yes you are personally responsible unless you form a LLC or a Corporation....Show more

Marjory Stromme: I think this might help you : http://www.readybusiness.net/blog/2008/05/23/faqs-...

Germaine Tieken: if you are a sole-proprietor, yes you are personally liable for your business debt. For legal purposes you ARE the business and the business IS YOU.There are ways around this, specifically creating a corporation. This, however, can be complicated and expensive for a very smal! l business. It could be worth looking into, especially if you have large assets that you need to protect.Starting a small business is a gamble. The more research you do, the more confident you can be that you will be successful, and therefore the more comfortable you can be taking a loan out knowing you are responsible for paying it back....Show more

Chauncey Williama: If you sign on the line that you are personally guaranteeing the loan, then you will be held liable whether you are a sole proprietor or a corporation.*

Dick Ovdenk: Yes you can be. http://www.explodebizcredit.com/