I opened a small business and 3 months after opening I formed an LLC. We had to close due to the drought situation in Ga. I have vendor that is now suing me. I had a personal guarantee with this Vendor before forming my LLC. Will my LLC protect my personal assets now??
2 Answers from Attorneys
Re: LLC Question
I am a bit confused regarding why you signed a personal guarantee before you formed the LLC since it wouldn't be necessary if you were the one contracting with the vendor anyway. But either way, forming an LLC after you contracted with the vendor will not provide liability protection unless you modified the contract with the vendor, e.g. re-signed the contract under the LLC without a guarantee.
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Re: LLC Question
Not if you signed a personal guarantee, assuming your guarantee covered debts of the LLC. Consult with a local attorney to review all the docs.
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