I'm opening a small business and was directed to file as an LLC so as to protect my personal assets. But everyone that I would like to setup an account with wants a personal guarantee whether I’ve been in business 1 or 10 years. What good does the LLC serve under those conditions? I understand about the lawsuit protection aspect, but where's the personal asset protection?
2007-05-07 02:26:51 · 4 answers · asked by dlk426 3 in Business & Finance ➔ Other - Business & Finance
They want a personal guarantee's because either you do not have sufficient revolving credit, or sufficient funds, credentials or like. Then I would say that you shouldn't have incorp'd as LLC until your business was financially stable & have good credit, with accounts.
2007-05-07 02:36:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If they are willing to join on the venture, why not make it LLP (partnership). In such case you have no problem with them - all of you have the equal stake on the business - win or lose.
Any claim against the business thru lawsuits is only limited by your share of the business. So as your partners ...
2007-05-07 02:43:09 · answer #2 · answered by siagnon 3 · 0⤊ 0⤋
keep shopping - I got a bank to give me an unsecured line of credit in the LLC name. My equipment loan is secured by the equipment also I have a VISA business card which is also unsecured debt.
2007-05-07 02:34:25 · answer #3 · answered by Norman 7 · 0⤊ 0⤋
good business tatics to want and need the back ground how do they know you are not going to runoff with their share to.
2007-05-07 02:32:40 · answer #4 · answered by ? 7 · 0⤊ 0⤋