If I recently closed my small business LLC and was in a website/marketing contract for1 year with a company, am I still responsible for the contract?
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If I recently closed my small business LLC and was in a website/marketing contract for1 year with a company, am I still responsible for the contract?
I have explained my situation to them several times even prior to closing my business but no one ever responded with my options. They just keep the site up and keep billing me. The contract is in the company’s name and I signed as the owner. I am wondering if I stop paying the $600 monthly charge, will it hurt me personally, affect my credit, etc?
Asked on February 13, 2012 under Business Law, Ohio
Answers:
Glenn M. Lyon, Esq. / MacGregor Lyon, LLC.
Answered 11 years ago | Contributor
Eeither way, the company will most likely still be liable for the contract. If you dissolved the company without first satisfying all of its debts, you may persoanlly liable for doing so. If the company is basically defunct and without assets, stopping payment maybe a good option. A judgment against a company with no assets is not worth much. But that assumes that you have maintained the company properly and don't otherwise have persoanl liability for the contract.
Steven Fromm / Steven J Fromm & Associates, P.C.
Answered 12 years ago | Contributor
If the contract is solely between the website and your LLC you are not personally liable on the debt. However, if you signed the contract as an individual and/or personally guaranteed the debt then you are on the hook. If this is not clear you should have an attorney review the contract in question.
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