Legal Question in Business Law in Arizona

I am a member of an llc that flips houses. Another member purchased a house in the llc name and is behind on payments. He used a hard money loan with high interest only payments. I am concerned that being a member of the llc opens me up to some personal liability/credit if he gets this house foreclosed on.

Asked on 5/08/20, 6:41 am

1 Answer from Attorneys

Frank Natoli Natoli-Legal, LLC

You will only be personally responsible for anything you signed offering a personal guarantee. Your partner may have done so, but so long you have not then they cannot demand that you personally be responsible. The LLC is another story. Of course your partner can obligate the entity.

If you need clarification, I suggest that you consult with a lawyer in private and discuss your objectives in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Our firm is now referred by the American Bar Association (see under the New York section):

Kind regards,



[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

Read more
Answered on 5/08/20, 7:03 am

Related Questions & Answers

More Business Law questions and answers in Arizona