Legal Question in Business Law in Iowa
I am married and have a small business that I want to expand but my wife doesn't want the debt liability with expanding. Can I form an LLC just for myself to protect her and myself
2 Answers from Attorneys
The LLC can protect you personally from many liabilities. Depending on what type of business you have, a corporation or LLC can be a VERY good idea. However, if you are getting bank loans (I'm guessing that is what you mean by "debt liability"), most banks will require you to sign a personal guaranty for the loan. In other words, the bank will want you personally liable for the loan if your LLC goes is unable to make the payments. You should discuss your particular situation with an attorney and an accountant to get specific advice and to ensure proper formation for your entity.
I agree with brother Moens.
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