Legal Question in Business Law in Georgia

LLC Question

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??

Asked on 6/20/08, 5:19 pm

2 Answers from Attorneys

Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business 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.

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.

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Answered on 6/21/08, 9:45 am

Charles W. Field Charles W. Field, Attorney at Law

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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Answered on 6/20/08, 5:44 pm

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