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Establishing a UG or GmbH is relatively easy and often happens almost reflexively. Whether this legal form always makes sense remains to be seen. Limitation of liability is certainly an aspect when choosing the legal form. The restriction almost always applies to the shareholders as long as they are not involved in financing the company with shareholder loans. It becomes more critical for the management, who become personally liable relatively quickly. Because a managing director does not act for himself, but like a trustee for other people's assets. This applies even if he owns 100% of the shares.