Boca Raton, FL – Following the massive economic havoc of 2008, scores of businesses have been trapped in a vicious cycle of debt. When it comes to business, debt is something that must be kept within control all through its lifetime. Massive commercial debt could be big trouble, perhaps even causing you to shut down your business. However, times are tough and businesses can’t help but accumulate debt from their lenders. When debt amount gets out of hand, a business needs to take immediate steps and there are many things a business can actually do to lower the debt level. Under such circumstances, it’s always advisable to ask legal questions before you proceed any further. Business debt is regulated by the same set of laws as individual debt. Nevertheless, there are certain differences between personal debt laws and commercial debt. When a business has overdue taxes, criminal charges can be laid on the business proprietor.
LLCs and Business Debt
LLC or a limited liability corporation can be appointed to handle both debt and legal responsibility for a business. In event that the LLC is prosecuted and loses the case or becomes bankrupt, the business debt can solely be collected from the LLC. Forced sale of assets, for example; business equipment and buildings, garnishment of commercial accounts can help in the debt collection process.