Does it affect credit if small business fails?

To elaborate, if I get a small business loan (approx. $40,000) for a business venture and let's say it fails (worst case scenario), what happens with the business loan if the business is underwater by $50,000? Can that be written off when the business files for bankruptcy or do they actually expect people to be able to pay the loan back after their hopes and dreams are already shattered? Also, would this person's credit be affected if the business has to close down/file for bankruptcy, etc? Please advise. Thank you

10 months ago - 2 answers

Best Answer

Chosen by Asker

Get a LLC. A limited liability corporation (LLC) will protect your personal assets from any downfall the business has and be on it's own credit, not yours. In my state it cost $50, but you will have to pay separate taxes too.

10 months ago

Other Answers

it is YOUR credit that is destroyed nd u still pay for it.

by Rob - 10 months ago