Quote:
Originally Posted by TiltonBB
If an LLC member personally guarantees a business's loans or obligations, he or she will be held liable for any default. An LLC won't protect a member who commits a wrongful act or is negligent in a way that results in harm to another person, such as fraud or assault. In a lawsuit you usually name anyone who may have any liability at the beginning and then it gets sorted out by the court and the lawyers as the case proceeds.
In my experience with commercial loans the bank almost always has you sign personally for any credit extended. One would think that was the case with the $8.5 million in loans.
|
Yes i agree they most likely signed a personal guarantee, and would be responsible for any loans or obligations, but if they did, it makes you wonder why they even ran the business as an LLC. But I can't imagine a bank loaning that kind of money without having a personal guarantee. That's what I'm wondering since it was allegedly a wrongful act, could the LLC and therefore the real estate, be taken and sold to pay accusers. I guess as you said, it will get sorted out.