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 Wyoming, the extent of personal liability for business debts is largely determined by the legal structure of the business. If you operate your business as a corporation or a limited liability company (LLC), you are typically shielded from personal liability for business debts. This means that creditors can only pursue the assets of the corporation or LLC to satisfy business debts, not your personal assets. However, this protection can be bypassed if you personally guarantee any loans, lines of credit, or leases for the business. On the other hand, if your business is a sole proprietorship or a general partnership, you do not have this liability shield. In these cases, you are personally liable for the debts of the business, and creditors can go after both your business and personal assets to recover what is owed.