If I have a business LLC and it goes bankrupt, how will it affect my personal assets?
Question Details:
My brother-in-law made a deal with me if I signed for a business that has an LLC. He's not living up to his end of it and I have nothing to do with this business. If the business fails, what am I in danger of being held accountable for? How will it effect my personal belongings like my home and car?
Your question is not very clear. What do you mean that you "signed for a business that has an LLC" - if this means that you signed a personal guarantee, you'd be liable for all the business debts that you personally guaranteed, regardless of what happens to the business.
If it means that you're a member of an LLC that you're not having a part in running, you could also be subject to liability, depending on the nature of the debts and/or obligations and how the business is being run.
You should absolutely consult with an attorney to determine what rights and liabilities you may have. You may need to take active steps to divorce yourself from this LLC and try to minimize your potential liability before it's too late.
I would be happy to meet with you to determine if I could be of assistance.
If the LLC was set up properly, and if you were properly made a member of the LLLC, and if the LLC wasn't being used by your brother-in-law to commit a fraud, I think you probably are safe, as far as your personal assets; all that you would have at risk is any money you've put into the business, and the business assets themselves. However, I would very strongly urge you to take whatever you signed to an attorney for review, because you can't simply buy an LLC. There's a possibility that you might be seen as owning the business as an individual, and that could be trouble. Don't put this off.
