Thank you for the opportunity to assist you. Please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.
No, you may not UNLESS you made a personal guarantee loan for the LLC when you opened a credit card. If not, then you CANNOT be held personally responsible for this is what an LLC is all about.However, there is something called 'piercing the corporate veil
' and in this case they CAN hold you responsible, but only if one or more of the following occurred while the LLC was in business:
Absence or inaccuracy of corporate records;
Concealment or misrepresentation of members;
Failure to maintain arm's length relationships with related entities;
Failure to observe corporate formalities in terms of behavior and documentation;
Failure to pay dividends;
Intermingling of assets of the corporation
and of the shareholder
Manipulation of assets or liabilities to concentrate the assets or liabilities;
Non-functioning corporate officers and/or directors;
Other factors the court finds relevant;
Significant undercapitalization of the business entity (capitalization requirements vary based on industry, location, and specific company circumstances);
Siphoning of corporate funds by the dominant shareholder(s);
Treatment by an individual of the assets of corporation as his/her own;
Was the corporation being used as a "façade" for dominant shareholder(s) personal dealings; alter ego theory;Essentially, the key is that they CAN 'pierce the veil' and go after you only if the LLC was a front for you only and not really a valid company AND/OR you co-mingled the funds with your own personal funds.I hope you found my answer helpful, and if so please click on the ACCEPT button. This is the only way for me to get credit for my work; I receive no credit for my time with you unless you press ACCEPT.
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