Do you know that a corporate body, that is a Company (LLC) can have a registered business name just the same way that any human person can?

Where the proprietor of a business name is a corporation, it is the company that bears all the liability of the business name.

The owners of the company are shielded from any liability incurred by the company as a result of the activities of the new business name.

The law recognizes a Ltd Liability Company as an artificial person with all the powers of a natural person.

What that means is that it can enter into contracts in its name, it can sue and be sued in its name and it can also register as many business names as it wants or incorporate as many companies as it wants.

There is a clear distinction between the company and the owners of the company.

The company enjoys a separate legal personality different from those of its founders.

While the liability of the owners of the corporate (LLC) is limited in relation to the company, the liability of the company (LLC) is unlimited in relation to the activities of the newly registered business name or Enterprise.

That means, in the case of wounding up, the liability of the company to its investors and creditors is unlimited.

To your #LegalSense

#BarinaadaLegal.