Assuming debt of an LLC
Asked by: todd - 27 March, 2011
if i invest 20% into a business that is an llc for stock, do assume 20% of the debt if it fails
if i invest 20% into a business that is an llc for stock, do assume 20% of the debt if it fails
Answered by: Lloyd Johnson - 27 March, 2011
Dear Todd,
Although LLC's do not have stock per se, if you are the 20% owner you usually assume proportionate liability for the company's debts. As always, there are plenty of exceptions to that general rule, and you should consult a business lawyer about those.
Dear Todd,
Although LLC's do not have stock per se, if you are the 20% owner you usually assume proportionate liability for the company's debts. As always, there are plenty of exceptions to that general rule, and you should consult a business lawyer about those.
