• Rodeo@lemmy.ca
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    1 year ago

    The risk actually complete and utter bullshit anyway, especially if you’re operating under a corporation.

    Consider I take out $1m to start business. I buy a property and equipment for the business. I operate it for a year, make some money, then go bankrupt.

    The bank takes back the business assets and … That’s it. They can’t touch your personal assets unless you agreed to put them up as collateral. If it was a sole proprietorship your credit score goes to zero which sucks for a few years, but if it’s a corporation the company goes bankrupt and you walk away scot free.

    So I spent a year running a business, made some money, and wind up in the same place I started. What did I lose? Maybe a credit score and that’s it.

    If there is nothing to lose, then there is no risk.