Table of Contents
Without establishing a formal business entity, your personal assets are exposed to potential risks, debts, and legal entanglements. However, once you form a company, your personal assets become safeguarded, irrespective of any adverse developments within your business. Your business or company is legally recognized as a distinct entity, subject to the laws of your country’s jurisdiction. This separation eliminates your personal liability, but it’s important to emphasize that this does not provide a shield for engaging in illegal activities, which can lead to legal consequences.