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Should I dissolve my LLC or bankrupt the LLC ?

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 ?

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Attorney answers 3


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



Yes I am the sole member of the LLC, I have tried to get legal help regarding this issue but I can't seem to find an attorney in Oregon that can help me with this immediately.

Tim L Eblen

Tim L Eblen


I understand. Well, now you know of at least two attorneys who will sit down with you for a FREE consultation, either Alex or my office. And like Alex said, most attorneys with a bankruptcy practice will also offer free initial meetings. Take the time to schedule an appointment sooner rather than later. Best of luck, Tim L. Eblen


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.


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 analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also terms and conditions item 9, incorporated as if it was reprinted here. Please visit my web site: for more information about my services.

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