Could I buy an LLC without paying off its debt immediately?
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Could I buy an LLC without paying off its debt immediately?
The owner of an LLC took a loan on the entity but ended up having outside issues that prevented him
from running the business. So now he wants to sell. Could I buy the LLC without paying off this debt
immediately?
Asked on December 7, 2017 under Business Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
If you buy the LLC, the LLC continues to owe the debt as per the terms of the loan agreement. You would not have to pay it off immediately *unless* the loan agreement states that if the LLC is purchased, the loan must be paid off right away--if it does say that, that term or provision is legal and enforceable, but if it does not say that, the LLC will continue paying its debt off at the same rate or schedule it has been paying.
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