Should I dissolve my LLC or bankrupt the LLC ?

Asked over 1 year ago - Portland, OR

My business is closing due to a few major losses and inability to pay back debts due to these losses . A few of these debts are judgments against us from unhappy clients in small claims the other expense that is really steep is from an ex - employee that we were unable to pay . What is the better option of the two or is neither a good option ? I want to make sure this does not carry over to me personally . Does leaving the LL in place but simply not doing any business still act as a shield to protect my personal liability ?

Attorney answers (3)

  1. Tim L Eblen

    Contributor Level 13

    6

    Lawyers agree

    Answered . This is a difficult issue to talk generally about in this kind of forum. Consider investing the time in a consultation with a local attorney who handles these kinds of matters. This way you can get specific advice applicable to the facts of your situation.

    Are you the sole member of this LLC?

    Tim L. Eblen
    www.eblenfreed.com

  2. Alexzander C. J. Adams

    Pro

    Contributor Level 6

    6

    Lawyers agree

    Answered . I agree with Tim. There are a lot of moving parts with business closings, especially if there are assets to the business. I would recommend you not rely on these types of post it sites (no matter how useful they are) and consult with an attorney regarding your individual situation before making any big decisions. I offer free consultations for these types of cases as do many others among the bankruptcy bar in Oregon.

  3. Michael Avanesian

    Pro

    Contributor Level 16

    3

    Lawyers agree

    Answered . Call the two people here and see what they can do to help you.

    The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may... more

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