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LawTalk
LawTalk, Attorney
Category: Legal
Satisfied Customers: 36324
Experience:  I am a practicing attorney with more than 30 years of experience in the legal field.
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I have been a 3% owner of a Nevada LLC for over 20 years.

Customer Question

I have been a 3% owner of a Nevada LLC for over 20 years. Now the majority owners have voted to take on a $5 million loan and have voted that all members guarantee the loan to the bank in an amount equal to their partnership interest.
Is this legal? Can they force me to guarantee a portion of this loan?
Submitted: 10 months ago.
Category: Legal
Expert:  LawTalk replied 10 months ago.
Good afternoon,I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today. While the management of the LLC can ask members to personally guarantee a loan to be taken out by the LLC, the LLC cannot force you to guarantee the loan, or any part of it, personally. However, given that there has been a vote that requires members to guarantee the loan as part of membership requirement, if you choose not to guarantee your share of the loan, the LLC could move to force you to sell your share of the LLC via a buy-out agreement that is likely part of the LLC By-Laws/Articles of Incorporation. You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.I hope that I have been able to fully answer your question. As I am not an employee of JustAnswer, please be so kind as to rate my service to you. That is the only way I am compensated for assisting you. Thank you in advance.I wish you and yours the best in 2016,Doug
Expert:  LawTalk replied 10 months ago.
Good afternoon,Do you have any additional questions that you would like me to address for you?In case you would like a phone call to further discuss these issues you have raised, I will make that offer to you. You are certainly not obligated to accept a call offer, but many people do find it helpful for clarification purposes, as well as to allow them to ask additional questions.As I have provided you with the information you asked for, would you please now rate my service to you so I can be compensated for assisting you?Thanks in advance,Doug