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!
1 Answer from Attorneys
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.
Related Questions & Answers
Dissolution of one business owner There are five business owners in our corporation.... Asked 12/08/04, 11:35 pm in United States Washington Business Law
Rights and Responsibilities I recently made a cake that started out as a ''gag'',... Asked 11/30/04, 12:49 am in United States Washington Business Law
Trying to retire from an LLC Is there some way for me to bring pressure on to this... Asked 7/17/04, 10:10 am in United States Washington Business Law
Corporation Name Restrictions Does a corporation's name involve restrictions when... Asked 6/25/04, 6:15 pm in United States Washington Business Law
Monopoly I own a heating company with a partner. Is it legal for me to start another... Asked 2/05/04, 11:35 am in United States Washington Business Law