Can a member of an LLC be held personally liable for its debt?

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Can a member of an LLC be held personally liable for its debt?

Also can the member be court ordered to pay off the LLC's debt? provided the member was not neglectful or unlawful. The LLC is registered in Connecticut

2007-03-12 02:20:05 · 2 answers · asked by dh 2 in Business & Finance ➔ Credit

2 answers

Yes, if the debt was personally guaranteed. It also depends on the kind of debt. Is the business still running? A lot of businesses will not extend credit to an LLC unless someone personally guarantee's the debt. It is possible that you signed something without even knowing, fine print on a purchase order for example.

2007-03-12 02:25:02 · answer #1 · answered by Primdiva 3 · 0⤊ 0⤋

As the name suggests, Limited Liability.

Therefore, the companies debts are independent not only from the shareholders but also from the management of the company.

2007-03-12 02:36:06 · answer #2 · answered by final 1 · 0⤊ 0⤋