If a limited$-$liability company fails and cannot pay its liabilities, creditors to pay the business's debts from their personal assets. This type of organization affords more protection for creditors than a corporation because stockholders are personally liable.limited$-$liability company because members have limited liability for the companys debts.partnership because a partner doesn't have to assume the other partners' share of the business's debts.proprietorship because there are two or more owners to share this liability.