Glossary · People and paperwork
In short
A business structure that protects owners from personal liability for business debts. As a buyer, you'll likely form an LLC to own the acquired business, shielding your personal assets.
Most small business acquisitions, especially with an SBA 7(a) loan, involve forming a new LLC as the acquiring entity. This structure separates your personal finances from the business's liabilities, which is crucial for risk management. Ensure your legal counsel helps you set up the LLC correctly.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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