No. As a sole proprietor, the entrepreneur is liable for business debts with all of his or her assets. In principle, only a limited liability company and a corporation can limit the entrepreneur’s liability to the amount of the company’s capital stock. However, this issue goes beyond the scope of this article and warrants a separate legal analysis.
Does a sole proprietorship protect the entrepreneur's personal assets in the event of bankruptcy?
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About the Author: Attorney Cedric PANCHAUD
Cédric Panchaud is an attorney, holds a doctorate in law, is a licensed notary, and is a certified tax expert. He heads PANCHAUD Tax & Legal SA, an independent firm in Geneva specializing in taxation of individuals and corporations, real estate taxation, occupational pension plans, and corporate restructuring. He regularly serves as a speaker at continuing education seminars (ISIS, OREF/EXPERTsuisse).