Am I responsible to pay bills and outstanding debt owed by an LLC from my personal accounts?

UPDATED: Oct 23, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 23, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Am I responsible to pay bills and outstanding debt owed by an LLC from my personal accounts?

I am in a 2 party partnership in a concrete company That is registered as LLC. That company has outstanding bills and credit overdue.The company has not been paid for most of the work it completed and has run out of funds in their banking account. I want to know if I am responsible to pay them from my personal finances? I have been trying to keep up but am no longer able.I work at another company. I am about to loose my current job due to the sale of my employing company.

Asked on October 23, 2011 under Business Law, Ohio


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If the bills are owed by a duly formed and organized limited liability company and you own an interest in this entity, you are not personally responsible for paying the outstanding bills of this entity out of your own personal funds.

The whole purpose of creating a limited liability company or a corporation is to keep one's personal assets separate and distinct from the entity's for liability purposes.

I recommend that you contact the creditors of the limited liability company to discuss its financial problems and see how the situation can be resolved possibly. I would also contact the debtors of this company in an attempt to generate some cash flow so that its creditors can be paid.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption