If a LLC member sign a personal garantee with a bank but the spose does not, what is the law say about personal property in a suit against the LLC?

Asked on July 16, 2012 under Business Law, North Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

A limited liability company is a separate and distinct entity under the laws of all states in this country just as if it was a person. If a person signs a personal guaranty for a limited liability company and the note is not paid, then the individual and the limited liability company can be sued for breach of contract regardless if the spouse of the individual signing the note did not.

If a judgment results, then the personal assets of the individual and the limited liability can be levied upon, including marital property as well as separate property.


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