They’ll also claim to take on all the financial risk if the company dies
The ones with any functioning brain cells set up the corp as an LLC, which makes them only liable for debts and such to the extent of their financial contribution. Also easy to set up and relatively little cost, so if they're stupid enough to actually set an uncertain venture up as a partnership or sole proprietorship (where they would be liable for their share/ALL of the liabilities respectively), they deserve to lose it even more
The ones with any functioning brain cells set up the corp as an LLC, which makes them only liable for debts and such to the extent of their financial contribution. Also easy to set up and relatively little cost, so if they're stupid enough to actually set an uncertain venture up as a partnership or sole proprietorship (where they would be liable for their share/ALL of the liabilities respectively), they deserve to lose it even more