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Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24869
Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
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I am a sole proprietor, If i change to an LLC will the LLC

Resolved Question:

I am a sole proprietor, If i change to an LLC will the LLC assume all the sole propeietor business liability, Tax, business loans and such?
Submitted: 7 years ago.
Category: Business Law
Expert:  Law Pro replied 7 years ago.

That's for the creditors to say. Since you were an established sole proprietor - your contracts are personal (meaning that you are personally liable for the contracts, debts, tax liability - everything done to date). If you form an LLC - anything done in it's name or after formation of such should be under the LLC's corporate protection thereafter. However, even if you form an LLC - many creditors, vendors, lender, etc. will mandate that you sign a personal guarantee or they might not do business with you.


So, in answer to your question - no, you will still be personally liable for any and all actions done to date.

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