If your small LLC goes bankrupt in a year, who is liable for all of the loans, and debt?

Question

Just want to know what would happen if my upcoming LLC goes bankrupt within the first year,will i eventually be in debt as well or is it just the LLC.

Answer 1

If you created the business correctly, the LLC is. If you set everything up right, the worst that can happen is that the LLC goes out of business. This is why you MUST speak with an accountant BEFORE you set up your business entity.

Answer 2

It depends on who signed for the loans and created the debt. My guess is that you will be required to be a cosigner for any corporate debt since this is a new small company. In that case, you would be responsible for any debt.

Check with you attorney to be sure.