What is the best structure for my new business to ensure the separation of my personal bankruptcy?
Question Details: Last year I filed Chapter 13 bankruptcy; I now wish to open a new business. What's the best to set up my new business to make sure that my personal bankruptcy is separate so that any monies from the business are for the business and cannot be seen as my money?
Either an LLC or corporation (e.g. an S-corp) would do the job, since both are their own separate legal entities from their members (owners of an LLC) or shareholders (owners of a corpoeration). These entities are separate from you.
Of the two, an LLC is generally better for most small businesses: there are less formalities and record keeping involved.
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