I am the minority share holder of an LLC. The first company operated as a DBA under the majority share holders name. He accumulated approximately $80k in debt which was personally guaranteed by him. We then formed the LLC and he transferred that debt to the company.
He wants me out, but does not want to buy me out. If we dissolve the LLC, what debt would I be liable for? We have acquired very little new debt since the formation of the LLC.More info: I had no involvement in creating the original debt. The majority share holder secured a personal loan and several lines of credit in his name, not the name of the company. When the LLC was formed, to the best of my knowledge this debt was simply included as a liability line item in the books. Sometimes the company made payments, sometimes the majority share holder made payments from their personal account or other business entity. After reviewing the operating agreement, I do not see any mention of specific liability or debt. The initial debt was essentially the start up costs for creating the product that went in to manufacturing.