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Unlimited Liability Corporations - First Nova Scotia, Now Alberta
Author(s): Sommerfeldt, Don
Date: May 19 2005

It is often said that one of the advantages of incorporation is that the shareholders of a corporation have limited liability. While that statement is generally accurate, it does not apply to the shareholders or members of an unlimited liability corporation (a “ULC”). However, in certain cross-border situations, it may actually be an advantage for a United States person (a “U.S. person”) who is a shareholder of a Canadian corporation to have unlimited liability.

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