If I recently closed my small business LLC and was in a website/marketing contract for1 year with a company, am I still responsible for the contract?

UPDATED: Feb 13, 2012

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If I recently closed my small business LLC and was in a website/marketing contract for1 year with a company, am I still responsible for the contract?

I have explained my situation to them several times even prior to closing my business but no one ever responded with my options. They just keep the site up and keep billing me. The contract is in the company’s name and I signed as the owner. I am wondering if I stop paying the $600 monthly charge, will it hurt me personally, affect my credit, etc?

Asked on February 13, 2012 under Business Law, Ohio


Glenn M. Lyon, Esq. / MacGregor Lyon, LLC.

Answered 10 years ago | Contributor

Eeither way, the company will most likely still be liable for the contract.  If you dissolved the company without first satisfying all of its debts, you may persoanlly liable for doing so. If the company is basically defunct and without assets, stopping payment maybe a good option.  A judgment against a company with no assets is not worth much.  But that assumes that you have maintained the company properly and don't otherwise have persoanl liability for the contract.

Steven Fromm / Steven J Fromm & Associates, P.C.

Answered 11 years ago | Contributor

If the contract is solely between the website and your LLC you are not personally liable on the debt.  However, if you signed the contract as an individual and/or personally guaranteed the debt then you are on the hook. If this is not clear you should have an attorney review the contract in question.

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 AttorneyPages.com 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.

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