Recently shut the doors to our business. We owe 2 places money and have a loan. Do we still have to pay it personally?

Asked about 3 years ago - Green Bay, WI

The place was on a lease, we have no money, no assets and no equity from any of it. It did aquire a loan for items that ended up staying with the building (ie security system) when we left. Plus owe 2 places $ for services. What do we do? Do we have to pay from our personal pockets? It was an LLC company.

Attorney answers (3)

  1. Julio E Portilla

    Contributor Level 9

    1

    Lawyer agrees

    Answered . In General, a limited liability company or LLC is a business structure designed to protect stakeholders from personal liability for business debt. Under this arrangement, if the business incurs debt or legal claims are filed against it, creditors cannot go after LLC members' personal assets. The limited liability for members extends to their personal investment in the business, although there are exceptions under certain circumstances. These exceptions include personally guaranteeing a business loan or debt, which is in default by the LLC -- a move that allows creditors to go after the loan guarantor for payment. Personally or directly injuring someone while conducing business is another exception, as is not depositing taxes withheld for employee wages. Intentionally doing something illegal or fraudulent and not keeping personal and financial records separate are other exceptions. If you would like further assistance kindly schedule a consultation with my office.

  2. Jason Scott Treguboff

    Contributor Level 12

    1

    Lawyer agrees

    Answered . I agree with Mr. Portilla. Check your your lease and loan documents to see if you personally guaranteed any of the LLC's debts.

    Legal disclaimer: This communication is for information purposes only and does not represent legal advice or an... more
  3. Stephen M Trezza

    Pro

    Contributor Level 17

    1

    Lawyer agrees

    Answered . You have to know which of these debts are personally guaranteed by you. Those are the creditors that can pursue you personally.

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