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Dave Kennett
Dave Kennett, Attorney
Category: Business Law
Satisfied Customers: 27689
Experience:  25 years practicing law
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If I signed a personal guarantee for a company that is an LLC

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If I signed a personal guarantee for a company that is an LLC and that company defaults on a loan, does the loan company have to try to go through the LLC first to get their money or can they come after me immediately?
DearCustomer- Whenever you sign a guarantee you are assuming the same liability as the corporation. You asked in your questions "if the LLC defaults..." so I am assuming there has been a default or missed payment. If that is the case then the creditor can seek payment from you without having to sue the LLC. The key word is "default". So long as the LLC is honoring its obligations there is no reason to seek payment from you but virtually all guarantees of debt will have wording that says "in case of default" meaning that once there is a default the guarantor is liable. So there is no need to sue the LLC before seeking payment.
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