Being an authorized signer of a LLC andnot an owner, will I be responsible if a deposited check is withdrawn and as a result balance is negative?
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Being an authorized signer of a LLC andnot an owner, will I be responsible if a deposited check is withdrawn and as a result balance is negative?
The LLC does not pay off the debt.
Asked on November 30, 2011 under Business Law, Florida
Answers:
Michael D. Siegel / Siegel & Siegel, P.C.
Answered 13 years ago | Contributor
It depends what the account agreement says in part. However, in general, if you deposit a check, your endorsement is a guarantee of that check. If the check is large enough, and if the check was a fraud, you could have personal liability. However, the bank would have a burden of proof.
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