Is insurance that offers unlimited coverage free? No? That's a liability, then. You will have to pay this insurance whether you are profitable or not. That's a risk, you see?
> there is the corporate veil for that.
Very few business actually structure themselves in such a way to receive this benefit. It's not automatic either, you'll still need lawyers to make this argument for you in court should you be sued.
> Just declare bankruptcy and start over.
You do realize there are multiple different types of bankruptcies and not all of them allow you walk away and "start over."
> Not like you are losing the money you extracted from the company.
Yes, those are called "profits" and they are taxed. Most companies are not entirely liquid and the majority of the value is in the operation not in past "extracted" money.
So what you are saying is you need sufficient money to do whatever you want in the guise of "business" without having to fear any consequences whatsoever?
Is insurance that offers unlimited coverage free? No? That's a liability, then. You will have to pay this insurance whether you are profitable or not. That's a risk, you see?
> there is the corporate veil for that.
Very few business actually structure themselves in such a way to receive this benefit. It's not automatic either, you'll still need lawyers to make this argument for you in court should you be sued.
> Just declare bankruptcy and start over.
You do realize there are multiple different types of bankruptcies and not all of them allow you walk away and "start over."
> Not like you are losing the money you extracted from the company.
Yes, those are called "profits" and they are taxed. Most companies are not entirely liquid and the majority of the value is in the operation not in past "extracted" money.