How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Attorney
Category: Business Law
Satisfied Customers: 55294
Experience:  32 years of experience practicing law and a businessman.
Type Your Business Law Question Here...
Richard is online now
A new question is answered every 9 seconds

Are we personally responsible for debts of a business partnership

This answer was rated:

Are we personally responsible for debts of a business partnership that we are a 50% owner of via an LLC or S CORP?

Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good morning. You are not unless you specifically personally guaranteed a particular debt. Otherwise, both LLC's and SCorp's are limited liability entities and a creditor to such an entity can only look to the assets of the entity for the payment of such debt.

I hope this has given you information that has been
helpful to you. If the information seems more general than
specific, please be aware that we are only allowed to
provide information and not specific advice.
If you have a follow-up question, please remember that
there might be a delay between your follow up questions and my answers because
I may be helping others or taking a break.

If you do have any additional questions about my answer
please simply ask a follow up question without rating so I can provide
you with a fully satisfactory answer.
Please be aware that any rating of 1 or 2 is
reflected as a negative rating, reflects negatively on my performance, and I
receive no credit for my answers.

Thanks for allowing me to be of service to you. Please be
aware that the information provided here is not legal advice. Rather it is
simply general information. All states have intricacies in their laws and any
information given is simply information only and specifically is not

intended to be, nor does it constitute, legal
advice. This communication does not establish an attorney-client relationship
with you. I hope this answer has been helpful to you.

Richard and 3 other Business Law Specialists are ready to help you
Customer: replied 4 years ago.

Can a creditor seek payment from us personally (without having our personal guarranty) from "peircing the corporate veil"? What does that mean?
Not if you have respected the entity as its own entity. They can only "pierce the corporation veil" which is a concept that a creditor would try to show that you are not treating the entity as a separate and distinct entity; rather, you are paying entity debts with personal funds and vice versa. It's a high burden for a creditor to overcome.