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<blockquote data-quote="SounDrive" data-source="post: 8450965" data-attributes="member: 653833">The problem is your definition of a contract. A sale is very much a contract; the seller agrees to provide an item at a certain price and the buyer agrees to buy it. It&#039;s hard to enforce oral contracts vs written contracts (email, formal contract, etc) but they are still very much enforceable.And yes, what you&#039;re calling is piercing the corporate veil. A limited liability business expense is not magically transferred to an individual unless they agree to take that liability in a contract or a court finds that they were careless with separating personal and business accounts. Selling the business does not automatically make them assume all debts of the company. The company and person are separate entities and debts will follow the company unless there&#039;s a contract made during the sale with other terms.I&#039;ve studied business law going on 2 years - business structure is very straightforward but as mentioned it all depends on the terms of the sale contract. But the default way things would happen is for everything to stay with the business. And again this only applies to an LLC or corporation which is its own entity. A self proprietorship or regular partnership is not its own entity and the owner retains liability</blockquote>

[QUOTE="SounDrive, post: 8450965, member: 653833"] The problem is your definition of a contract. A sale is very much a contract; the seller agrees to provide an item at a certain price and the buyer agrees to buy it. It's hard to enforce oral contracts vs written contracts (email, formal contract, etc) but they are still very much enforceable. And yes, what you're calling is piercing the corporate veil. A limited liability business expense is not magically transferred to an individual unless they agree to take that liability in a contract or a court finds that they were careless with separating personal and business accounts. Selling the business does not automatically make them assume all debts of the company. The company and person are separate entities and debts will follow the company unless there's a contract made during the sale with other terms. I've studied business law going on 2 years - business structure is very straightforward but as mentioned it all depends on the terms of the sale contract. But the default way things would happen is for everything to stay with the business. And again this only applies to an LLC or corporation which is its own entity. A self proprietorship or regular partnership is not its own entity and the owner retains liability [/QUOTE]

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