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lwpat, Attorney
Category: Business Law
Satisfied Customers: 25387
Experience:  Attorney with over 35 years of business experience.
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My husbands father and his wife wanted to start a landscaping

Resolved Question:

My husband's father and his wife wanted to start a landscaping company with my husband. She had the money, and all the start up decisions were what they wanted. He didnt sign anything that any money was lent to him, she bought the trucks with cash and put them in the name of the company (corporation) and also put start up money directly into the company. My husband is listed on the charter as the President. Is he personally liable to pay her back?
Submitted: 7 years ago.
Category: Business Law
Expert:  lwpat replied 7 years ago.
No he is not personally liable to pay her back since he did not sign anything. If there was a loan then it would be to the company and the company is responsible. However, if she is a shareholder then it would likely be treated as a capital contribution to the company by her rather than a loan.
Customer: replied 7 years ago.
Now if he cosigned on a truck loan for the company, does that implicate him at all? I have told him to get all loans out of his name.
Expert:  lwpat replied 7 years ago.
If he personally guaranteed a loan then the company is responsible first and he is responsible second but that has nothing to do with the money from her.
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