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Insolvency. Whenever a company cannot afford to pay its bad debts. of company you have set up will affect what occur in this situation -- you may well be liable whatsoever the debt yourself, or even for none. EXAMPLE: Harry started Nebula Graphic Designs in 2007, and his expenses exceeded his gross receipts by $40,000 that year. Over the side, Harry worked like a printer's representative, netting $12,000 in Incorporate LLC commission fees. H
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