Legal Question in Business Law in Georgia

Re: Bankrupting LLC

You can certainly start as many new companies as you want. However, you cannot legally start a company and transfer assets out of the indebted company into the new one without proper consideration to avoid paying creditors. In other words, any asset would have to be bought by the new company for a fair price and the proceeds would then have to be paid to the creditors.

You can dissolve the LLC, but all debts would need to be satisfied first. Or, the company can declare bankruptcy, discharge its debt and then dissolve.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

Re: Bankrupting LLC

Corporations and LLC's do not get discharges in bankruptcy - they simply just die unpaid. For that and other reasons, bankruptcy for an entity is often of little value over just shutting the doors. It depends on the facts and circumstances.