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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 117372
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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My husband owns a small business (single owner LLC) I have

Customer Question

My husband owns a small business (single owner LLC) I have no ownership in the company and do not work for the company. I signed an advertising contract and my husband was unable to pay the debt. It has been sent to collection and the collection agency is stating that I am personally responsible for the debt and they will come after my personal assets. Can I be held personally responsible for this debt even though I have no ownership or interest in his business?
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Yes, if you signed the contract with your name and you have no interest in the business, you can be held both personally liable and the company could be held liable if you were acting with apparent authority as agent of the company in signing the agreement. So, when you acted on behalf of the company with apparent authority to sign, if you signed your name to the contract and not "on behalf of ABC LLC" then you can incur personal liability for signing as an agent with apparent authority to do so.