Whether you have personal liability for the debts of your business (are personally liable) first depends on the form of entity in which you are operating your business. If your business is structured as a corporation or as a limited liability company (LLC), you will generally not be personally liable for the debts of your business—unless the creditor (bank, lessor) requires you to personally guarantee the loan, line of credit, credit card account, or equipment lease you use for your business. But if you are operating your business as a sole proprietorship or as a general partnership, you generally will have personal liability for the debts of your business.

In Delaware, the extent of personal liability for business debts is largely determined by the legal structure of the business. If the business is incorporated as a corporation or formed as a limited liability company (LLC), the owners, known as shareholders or members respectively, are typically not personally liable for the business's debts. This means that their personal assets are generally protected from creditors of the business. However, personal liability may arise if an owner personally guarantees a debt or obligation of the business. On the other hand, if the business is operated as a sole proprietorship or a general partnership, the owner or partners are personally liable for the debts of the business. This means that personal assets can be used to satisfy business debts and obligations. It's important for business owners to understand the implications of their business structure on personal liability and to consult with an attorney to ensure they are adequately protected.