New Federal Requirement: Starting January 1, 2024, most business entities in the US will need to report Beneficial Ownership Information.


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

Answered by: admin  — 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.

Ask Incorporation Question
Please enter your full name
Please enter your email address
Please select your phone number
Please select
Please enter text message
Begin Web-Stat code v 6.0