If I become a 0.001% partner of a company, what are the potential backfalls that might personally effect me if something bad should happen to the corporation?

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If I become a 0.001% partner of a company, what are the potential backfalls that might personally effect me if something bad should happen to the corporation?

Asked on August 23, 2012 under Business Law, Louisiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If it is a corporation and you are a minority shareholder--a very distinct minority (one-tenth of one percent)--you should only have your investment at risk. That is, in the event something happens to the company, the money you put into it may become worthless, but you should not face any personal liability (except to the extent you personally guaranteed any debts or obligations).


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