Legal Question in Business Law in Washington

Responsibility on loans

I am a sole prop. and I am thinking of going LLC or INC. If I was to apply for a sba loan, how would I protect my personal property? Most banks are telling me that the guarantor on the loan would be responsible but I need to find out how to protect my personal property before I take this step. Thanks!

Asked on 1/03/05, 5:34 pm

1 Answer from Attorneys

Robert Horvat Barg Horvat PC
0 users found helpful
0 attorneys agreed

Re: Responsibility on loans

You generally can limit your liability by setting up an LLC or S-corporation. However, if a lender requires a personal guaranty of the loan to the LLC or corporation, your personal assets could nevertheless be at risk. There are ways to structure the guaranty with the lender upfront that can minimize these risks. Please feel free to call me to discuss further.

Read more
Answered on 1/03/05, 5:40 pm

Related Questions & Answers

More Business Law questions and answers in Washington

Looking for something else?

Get Free Legal Advice

88953 active attorneys ready to answer your legal questions today.

Business Law Legal Forms

Browse and download our attorney-prepared and up-to-date legal forms from $4.99

Find a Legal Form

Featured Attorneys

Anthony SmithLawSmithLee's Summit, MO
Rahul Manchanda, Esq.Manchanda Law Office PLLCNew York, NY
Glen AshmanAshman Law OfficeAtlanta, GA
Find An Attorney

Are you an Attorney?

Earn additional revenue and grow your business. Join LawGuru Now