I own an LLC in Phila, PA (I live in NJ). Can i be held personally responsible for any debt incurred by the LLC? Such as, we had a credt/cebit card machine that according to them (RBS World Lynx) was terminated early and they are billing for almost $800.
The business is doing poorly. I am thinking of dissolving it. We do not owe any others, just RBS. I don’t want to ditch the debt but they want payment in full ASAP and are threatening my personal credit. Can they do that? Also, when i looked up my credit several months ago RBS showed up as closes and paid in full. What’s the point of an LLC then?
The real issue here is what the RBS agreement said. Most small and medium sized business owners are required to personally guarantee their company debts. It’s in the fine print. This is because most creditors know that the chances of a business being successful are small. Most businesses will fail within five years.
Why don’t you just ask RBS to show you where you would be personally responsible for this debt. If they can’t then the debt will die with the LLC. But, when you close the company you may be asked to certify that all debts have been dealt with.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.