If I co sign for a business loan through the business name, will my personal assets be at risk?
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If I co sign for a business loan through the business name, will my personal assets be at risk?
I would be co signing through a company
that uses multiple lenders
Asked on August 21, 2017 under Business Law, Virginia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Is the company an LLC or corporation? If it is an LLC or corporation, AND the loan and/or guaranty agreement clearly states that it is the LLC or corporation which is cosigning, then this will protect you. Otherwise, if the agreement says you are cosigning personally, just adding or using the business name as your "signature" does not change your personal liability: the agreement must clearly contemplate and state that the LLC or corporation is the cosigner or guarantor. Or if the company is not an LLC or corporation, it will not help in any event, because only LLCs or corporations protect personal assets from business debts.
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