Background: I have a single member LLC (a web design company) that sold all assets last year and, to avoid a recent lawsuit, have used a business credit card (attached to the business EIN) to pay a settlement of $15k. I have no funds to pay this back to the bank. No revenue has been made within the last year and no future revenue will be made.
If my LLC declares bankruptcy...
1. how does this affect my personal credit or liability?
2. how does this affect my ability to own other future businesses>
3. will the business be audited by the government or by the lending bank?
2007-02-24 07:58:05 · 4 answers · asked by george 1 in Business & Finance ➔ Corporations
You left out one very important detail. Who did the credit card belong too? If this was a personal credit card or an LLC credit card that you personally guaranteed, an LLC bankruptcy won't mean anything at all with respect to any personal obligation you have to repay the loan. Also, a bank could sue to stop you from getting a discharge if you borrowed the money with the intent of not repaying it.
2007-02-25 01:15:04 · answer #1 · answered by Carl 7 · 0⤊ 0⤋
At FINANCE-SOLUTIONS.INFO- you can find the best financial solutions
RE My LLC is about to declare bankruptcy. Will this affect future business endeavors? 2. will i be audited?
Background: I have a single member LLC (a web design company) that sold all assets last year and, to avoid a recent lawsuit, have used a business credit card (attached to the business EIN) to pay a settlement of $15k. I have no funds to pay this back to the bank. No revenue has been made within the last year and no future revenue will be made.
If my LLC declares bankruptcy...
1. how does this affect my personal credit or liability?
2. how does this affect my ability to own other future businesses>
3. will the business be audited by the government or by the lending bank?
2014-10-04 01:05:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
1. If set up correctly, it should not affect your personal credit or liability. That's the primary advantage of a corporation over a sole proprietorship.
2. I can affect your ability to start up other corporations. Check with an accountant to be sure in your particular state.
3. Not necessarily.
2007-02-24 15:18:00 · answer #3 · answered by jdkilp 7 · 0⤊ 0⤋
that's going to be a great deal affected if the owner fails to sacrifice a virgin lamb each and every 0.33 finished moon. i comprehend, it sounds kinda gross, yet not as gross as eating ramen daily.
2016-10-16 09:59:06 · answer #4 · answered by Anonymous · 0⤊ 0⤋