Hello, I recently opened a new business checking account for my limited liability company and was issued a Business Check Credit Card. Both my name (as the cardholder) and my business name (as the Customer) appear on the Business Check Credit Card.
I have been asked to give the cardholder name (my name) to accept electronic payments for my companies online business. Am I (the cardholder) legally liable for card transactions that are made with the card, is the my company legally liable, or are we both legally liable for transactions? Thank youI am the owner of a one member llc transactions (receiving online payments minus any applicable fees such as refunds or chargebacks)
Probably both are liable. As the other poster answered, if your LLC is merely an alter ego of you, then anything the LLC incurs, you incur. So the question is going to be whether you observe corporate formalities in the LLC that would make it an entity completely separate from you personally. Things that contribute to that question are (1) what sort of papers did you draw up to create the company? (2) Do you pay any personal bills out of your business checking accounts or do you keep all business and personal transactions separate? (3) how do you file your taxes (did you set your company up as an S-corporation?) (4) Is your company housed in its own location or do you work it out of your home? (5) Is your business registered with the Secretary of State? (6) How do you pay yourself out of the business? And so on. It would be worth your time to talk to an attorney who handles creation of companies to ensure that you are doing everything necessary to keep your business and your personal transactions completely separate, if you are wanting to not be held accountable for your business's responsibilities.
And none of that will matter anyway, if your contract with the bank holds you personally liable (which is usually the case). so read the entire contract, including the fine print.
No attorney-client relationship is established with this answer. It is not to be considered legal advice, but is merely given to point you in the right direction and give you a general answer as to the law regarding the question you have asked.
Your merchant account agreement should describe if you are personally guaranteeing transactions for the LLC. You could be liable even if you aren't a party to the agreement if someone decides that your LLC is really an "alter ego" of you, especially if it's a single member LLC. That means that you should contact an attorney to review your merchant account agreeement, LLC operating agreement, etc. to make sure that the corporate form you've created stands up to scrutiny.
The foregoing is not legal advice nor is it in any manner whatsoever meant to create or impute an attorney/client relationship.
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