I was burned on this once before, where the multi-member LLC got a credit card with the company's name, but the credit card also required my name on the card. I was the CEO and approved and made all purchases, so nobody else had a card with their name. When the company dissolved I was left holding the remaining credit card debt (thousands of $) and none of the other members had any impact on their credit ratings. Mine sank. My credit is now restored, and I am in a different multi-member LLC partnership. We want to get a credit card but I do not want to get left holding the bag again. How can I set this up so that my LLC partner is legally - in the eyes of the credit card company - equally responsible for this along with me?
Tell the credit card company that you would like you and the other member to be equally liable for repayment and request an application form that will accomplish that. You should be aware that even if you and the other member are jointly liable for the debt the lender can proceed against either one of you to recover the entire debt.
You haven't identified the other parties involved in this question so I cannot determine whether I may have a conflict in this matter. Should it turn out that I have an attorney-client relationship with any of the other parties, my response to this question will not prevent me from continuing to represent an existing client.
Mr. Smith's answer is correct. Please ensure that you pay attention to his last sentence. Even if you two are jointly responsible the credit card company, in the event of default, can pursue one of you for 100% and the other for nothing. Then you would have to pursue the other LLC member for the share you were required to pay, beyond yours.
Please mark this answer as "Best" or "Helpful" if it is to you. This answer does not create an attorney/client relationship and you cannot presume that I am your lawyer or that my advice can be relied upon in any way other than for information only. You will not become my client unless and until you sign and return a retainer agreement and it is signed by me as accepted.
I see no need to give the Credit Card company more than one individual to be liable. Just put it in the Operating Agreement that all Members (or whatever you agree on) should be equally liable on such card and each person called upon to pay individually may seek contribution or indemnification from the others. That way, you can go back after the others, but the credit card company is not given any additional targets. Good Luck.
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