If I wish to leave an LLC partnership and my partner wishes to continue running the company, am I responsible for my share of the companies debt?

Asked on August 30, 2011 Wyoming

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you are still one of the owners of the LLC, yes, you'd still be responsible for its debt, even if no longer actively involved. You need to make sure you are no longer an owner or managing member of the LLC. You should consult with an attorney who can determine the best way to do this--this might be to keep the current LLC and remove you in some fashion (partner buys you out? even for a nominal amount?) or by having the partner create a new LLC and transfer all the assets and business name to it, then dissolve the current LLC. Which is best will depend on the exact circumstances--let an attorney guide in the best way to do this. Don't forget about any debts you have personally guaranteed and company credit cards--you need to address those as well.


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