I can’t pay my business card which is a LLC. Would this effect my personnal credit history and what is the worst that can happen to me ?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
I can’t pay my business card which is a LLC. Would this effect my personnal credit history and what is the worst that can happen to me ?
I can’t pay my business card which is a LLC. Would this effect my personnal credit history and what is the worst that can happen to me ?
Asked on May 18, 2009 under Business Law, New Jersey
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
See this link: http://business-law.freeadvice.com/corporations/incorporation_LLC_S.htm
The benefit of an LLC provides protection from individual liability subject to certain exceptions. I don't know what you mean by what is the worst that could happen to you. It depends on if the creditor decides to sue you personally and if you can show that absent any exceptions, you are not personally liable for such debts.
Further, here is some information from the New Jersey Secretary of State's office:
http://www.nj.gov/njbusiness/starting/basics/limited_liability.shtml
New Jersey Statute 42:2B-1 et seq. handles all matters concerning Limited Liability Companies.
42:2B-9. Members', managers' rights, obligations
9. Except as otherwise provided in an operating agreement, a member or manager may lend money to, borrow money from, act as a surety, guarantor or endorser for, guarantee or assume one or more specific obligations of, provide collateral for, and transact other business with a limitedliabilitycompany and, subject to other applicable law, has the same rights and obligations with respect to any such matter as a person who is not a member or manager.
L.1993,c.210,s.9.
42:2B-10. Indemnification powers
10. Subject to such standards and restrictions, if any, as are set forth in its operating agreement, a limitedliabilitycompany may, and shall have the power to, indemnify and hold harmless any member or manager or other person from and against any and all claims and demands whatsoever.
L.1993,c.210,s.10.
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I would need to know more information. For instance, did you sign for the card personally as well as on behalf of your busienss? if you signed personally and fail to pay, then you can risk being sued and having your credit affected. If you only signed on hehalf of the business, then only the busirness's credit is at risk and can be sued. I suggest finding out as it will determine what legal exposure you have.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.