Being an authorized signer of a LLC andnot an owner, will I be responsible if a deposited check is withdrawn and as a result balance is negative?

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Being an authorized signer of a LLC andnot an owner, will I be responsible if a deposited check is withdrawn and as a result balance is negative?

The LLC does not pay off the debt.

Asked on November 30, 2011 under Business Law, Florida

Answers:

Michael D. Siegel / Siegel & Siegel, P.C.

Answered 9 years ago | Contributor

It depends what the account agreement says in part.  However, in general, if you deposit a check, your endorsement is a guarantee of that check.  If the check is large enough, and if the check was a fraud, you could have personal liability.  However, the bank would have a burden of proof.


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