In the June 24, 2021 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty, wrote “A Primer on Pennsylvania’s Participation Theory.”
One of the primary benefits of organizing a business as a corporation (or similar entity) is limited liability protection. By establishing the corporation as a separate legal entity, its actions become distinct from the individuals running it. For the corporation’s shareholders, this provides downside certainty; the maximum liability exposure they face (in general) is the value of their investment. Since the losses stemming from personal liability are theoretically infinite, investors relish the corporate form’s ability to mitigate risk. Continue reading ›