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Is there any personal liability involved if I make a LLC?

Asked over 2 years ago - Atlanta, GA

Hello, I am thinking of starting a new small business. This business has some risks involved in it. And I am a bit worried if I would be able to recover my investments. I am getting a loan for this business. My question is that if for some reason I have to declare bankruptcy (i will start a LLC), can the bank come after my assets or can it just secure the assets under LLC formed? Do I need to be a president or just a member of the LLC to be free from personal liability. I am in Atlanta, GA.

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Attorney answers (1)

Glenn M. Lyon

Reputation Level 14

Answered over 2 years ago. Limited Liability Company (LLC) Lawyer in Atlanta, GA.

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The general rule is that owners (members) of an LLC are not responsible for the debts and obligations of the LLC. However, there are exceptions, including singing a personal guarantee, as banks often require for new businesses and piercing the LLC veil, which can happen if the LLC is not set up and maintained properly. In your situation, being an officer makes no difference if you are also an owner.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

MacGregor Lyon, LLC

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