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Loren, Attorney
Category: Business Law
Satisfied Customers: 33492
Experience:  30 years experience representing clients .
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We need to dissolve our LLC quickly. We have about $35,000

Customer Question

We need to dissolve our LLC quickly. We have about $35,000 in debt- taxes, credit card, venders, utilities- and no money. Is it better to file bankruptcy or just walk away? What is the liability of the owners?
Submitted: 8 years ago.
Category: Business Law
Expert:  Loren replied 8 years ago.
As a general rule, the members of the LLC are not personally liable for the LLC debt. LLC debt, like corporate debt, can only be satisfied with company assets

That assumes, of course, that the members have not signed on personally for the debt or signed any personal guaranties of LLC debt.

Bankruptcy would be unnecessary if the LLC debt is uncollectible.