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

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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

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 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.


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