Ask The Get Out of Debt Experts Business Debts

My LLC Was a Wall Street Trading Firm With Negative Equity and it is Closing. – Michael

“Dear Steve,

Help!

I have an LLC that was a trading firm on Wall Street. At the end, we had significant negative equity in the LLC. (Owed to our clearing agent) If we close the LLC, what happens to that loss? Is it considered forgiven debt? Where can I corroborate that in the tax code?

Michael”

Damon Day - Pro Debt Coach

Dear Michael,

As much as I appreciate the opportunity to assist you, dude, seriously, you need specific legal advice and not free advice from some guy on the web. You are playing in the big leagues and with obligations and companies that have big legal teams and don’t like to take prisoners.

If you owe an established clearing agent and others, closing the LLC may not shield you from personal liability. In order to clear the business debts you may need to consider a business bankruptcy before the business closes.

As for LLC tax advice, talk to your accountant from the trading company you owned. I’m sure you had one.

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.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.




About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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