If we are a LLC commercial enterprise that has been in business almost a year but we are struggling, what options do we have?
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If we are a LLC commercial enterprise that has been in business almost a year but we are struggling, what options do we have?
We took out unsecured lines of credit to purchase our equipment and we have a loan with a capital lease company. We have 1 year left on our lease. We have ow run out of money to pay our bills. I have not been able to pull a salary in 5 months and we can only afford to pay the interest on our loans ( barely paying).
Asked on September 5, 2013 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
If the business is an LLC, you should not be liable for any of its debts or other obligations, except to the extent that you personally guarnateed them; if the debts and obligations are not personally guaranteed, you should be able to close down the business and "walk away" from those debts.
If you have personally guaranteed any debts or obligations, then you may be held liable for them and you may need to consider bankruptcy as an option.
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