> Forming a corporation helps protect the founders from personal liability. If the corporation is sued, the assets of its founders are more likely to be protected.
Hmm... I guess this means that by forming a corporation, there's no guarantee that a founder's assets will be protected.
Anyone can do that. You’re just forming a contract between both a corporate entity and a natural person, with clauses requiring the natural person to cover the obligations the corporate entity, if the corporation fails to fulfil its obligations.
The natural person in this cases doesn’t have be a founder, or company owner. It could even be another larger corporate entity that’s less likely to vanish overnight.
But none of this changes the protections a corporation gives its owners, it’s just that the owner are choosing to sign contracts that make them personally liable for failures of the corporation.
All that depends on the legal entity form used, which is especially in Europe quite interesting.
All depends on the country.