Your sister formed her business as an LLC to protect herself from personal liability. At the same time she opens her business, the economy takes a dive and her business fails with many business debts remaining. Which of the following circumstances would make your sister personally liable for her business's debts?A-She signed documents personally securing the debts of the business. B-She did not have sufficient experience to make good decisions on behalf of the business. C-She defaulted on her loan from the Small Business Administration. D-Customers did not buy the goods that her business produced and now she must pay back her suppliers.

The correct answer is A. She signed documents personally securing the debts of the business.

Explanation:

Anyone who joins another to develop a common project is a partner (from the Latin "socius") or partner. It is the contract that is established between the two, to regulate that relationship, that defines the responsibility of each of them for the whole project.

From a legal point of view, it is in that contract, at the very moment of incorporating the company, when obligations, rights, powers, etc. are also defined. And it is that by establishing the company an independent entity of the partners is created, with its own legal personality and its own assets.

Therefore, we find a scenario in which the legal entity, which is the company, appears on the one hand, and on the other, the natural persons, who are the partners that integrate it (or the partner in case of being before an SLU ).

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