Each of us lives only now, in this brief instant. The rest has been lived already. So make the most thoughtful choices you can today that will lead to a better future.
Steve's Thought of the Day
Stop drifting and hoping a magic solution will appear. Instead, you can participate in rescuing yourself. Find peace by pursuing facts through trusted advisers and research rather than the blind trust of salespeople trying to sell you something by almost any means necessary.
Steve's Thought of the Day
Make decisions to deal with your debt with logic and facts, not assumptions, and worry about what other people will think. People who judge you will soon be forgotten. Nobody thinks about anyone that much.
Steve's Thought of the Day
The world is nothing but constant change. Your life is only a perception. Choose a way out of debt based on facts, not assumptions. Do what is best for your future because those that judge you will not feed you.
Steve's Thought of the Day
Do you have a greater responsibility to repair your financial past or your financial present and future? Make good choices that allow you to tackle your debt and immediately start building your emergency fund and saving for retirement. Tomorrow will be here before you know it. Lost time is a sin.
Steve's Thought of the Day
There is no sense in wasting a perfectly good financial mistake. Instead, learn from it and do better moving forward. The past is gone. Turn and face the future now.
Steve's Thought of the Day
Those who judge you for past financial mistakes are not your friends. So don't make choices about your future out of fear of what they may think. Instead, make choices based on truth, fact, and what is best for you moving forward from today.
Steve's Thought of the Day
Don't believe everything you think. Challenge your assumptions about getting out of debt. Do what is best for you, not others.
Steve's Thought of the Day
Is it less moral to file bankruptcy or to not take action that leaves you old, broke, hungry, and dependent on others?
Steve's Thought of the Day
If bankruptcy is so bad, why did our Founding Fathers specifically include it in the U.S. Constitution as protection for financial difficulties?
Stop listening to people that say bankruptcy is a last resort. It is neither first nor last. It is a tool like credit counseling, debt settlement, and others. For the best result, you need to use the right tool for the job.
Steve's Thought of the Day
People that tell you to avoid bankruptcy want to sell you something else are repeating something they heard or do not know what they are talking about. Get the facts and then make your own decision. Don't let an unskilled script-reading commissioned salesperson make life decisions for you.
Steve's Thought of the Day
Debt problems are like fingerprints. No two are alike. A one-size-fits-all solution will give you a one-size-fits-all result. You deserve better.
Steve's Thought of the Day
You are not your debt. Your value, self-esteem, and existence should not be defined by the money troubles you may be facing right now. Debt problems are solved with proper action, not guilt, self-hatred, and disgust.
Steve's Thought of the Day
Debt is nothing more than math wrapped in emotion. The math is easy, the emotional part leads us to do impulsive things. Not the right thing.
Steve's Thought of the Day
What type of money personality do you have? It is important to know. Take my online test now and discover how you unconsciously deal with money, credit, and debt.
Steve's Thought of the Day
How much retirement savings are you willing to throw away by dealing with your old debt instead of preparing for your financial future? Find how much you will lose by making the wrong choice. Use my online debt repayment calculator now.
Steve's Thought of the Day
Does it make more sense to ask for life-altering debt advice from an unskilled and untrained commissioned salesperson in a call center or an experienced debt coach like Damon Day that provides a customized solution for money troubles?
Steve's Thought of the Day
Will I Be Responsible for My LLC Debt When it Folds? – Lisa
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?
Do You Have a Question You'd Like Steve to Answer? Click Here.
Lisa”
Dear Lisa,
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.
8 thoughts on “Will I Be Responsible for My LLC Debt When it Folds? – Lisa”
After several telephone calls back and forth it was found that yes, there was a contract that was not signed. I knew there was no way I would have singed anything that held me personally responsible for any debt incurred by the business, it was the same reason we do not have a line of credit or any credit cards. I value my credit as much as anything else of value. When you get right down to it, credit is all the working man has!Steve………thank you again!
When the time is right think about this. If you want to keep or improve your credit you need a credit card or two. You don’t have to carry a balance but you need to show you can be responsible for unsecured credit.
Steve, upon further investigation I have found I have no contract with the credit/debit card carrier. A friend had already owned the machine and gave it to me. They did not even come to the office to hook it up, we did it al my telephone. They still insist I owe $800.00
Hum. For $800 it might be worth spending $300 to get a lawyer to send them a letter. If there is no support for the debt it may kill it then and there.
I learned the hard way shortly after college. I had a business and even created a corporation, but was not aware that my “business” credit cards at the time had a personal guarantee tied to them. Needless to say, the business failed and was shocked to find creditors calling and suddenly my credit score trashed due to late payments.
The business card thing is a evergreen gotcha. The lenders bill it as a business credit card and ask you to put the business name on it but way down in the fine print…well you know.
After several telephone calls back and forth it was found that yes, there was a contract that was not signed. I knew there was no way I would have singed anything that held me personally responsible for any debt incurred by the business, it was the same reason we do not have a line of credit or any credit cards. I value my credit as much as anything else of value. When you get right down to it, credit is all the working man has!Steve………thank you again!
Lisa,
Happy to help.
When the time is right think about this. If you want to keep or improve your credit you need a credit card or two. You don’t have to carry a balance but you need to show you can be responsible for unsecured credit.
Steve
Steve, upon further investigation I have found I have no contract with the credit/debit card carrier. A friend had already owned the machine and gave it to me. They did not even come to the office to hook it up, we did it al my telephone. They still insist I owe $800.00
Lisa
Lisa,
Hum. For $800 it might be worth spending $300 to get a lawyer to send them a letter. If there is no support for the debt it may kill it then and there.
Steve
I learned the hard way shortly after college. I had a business and even created a corporation, but was not aware that my “business” credit cards at the time had a personal guarantee tied to them. Needless to say, the business failed and was shocked to find creditors calling and suddenly my credit score trashed due to late payments.
Chalk one up for learning the hard way!
.-= Jeremy´s last blog ..Avoid a Financial Holiday Hangover This Year =-.
Jeremy,
The business card thing is a evergreen gotcha. The lenders bill it as a business credit card and ask you to put the business name on it but way down in the fine print…well you know.
Thanks for the comment.
Steve
Steve, thank you so much for a quick and accurate response!
You’re the best. So glad i stumbled upon you!
Lisa,
Glad I could help.
Steve