Does a guarantor of business equipment get any rights of ownership to it?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Does a guarantor of business equipment get any rights of ownership to it?

I want to start up a sole proprietorship business but don’t have credit to purchase equipment. If a relative signs for the line of credit but the equipment is under the business name, who has the rights or ownership of the equipment – the business or the said relative?

Asked on May 7, 2014 under Business Law, West Virginia

Answers:

Bradley Miller / Miller Law LLC

Answered 9 years ago | Contributor

If the equipment is under the business's name, then the business owns it. If the business is simply you as a DBA with no formal business entity (like a corporation or LLC), then from a practical standpoint you own the property of the business. If you have a business entity, such as an LLC, then as an owner (member) you may have a right to the equipment upon the dissolution of the business.

However, unless there is a written agreement giving them an ownership interest in the property, a guarantor does not have any ownership interest in either the business or the collateral - in this case the equipment.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption