Legal Question in Business Law in Massachusetts

Re: Business Credit Card Debt

This sounds like a messy situation. If it is your personal credit card, rather than one on the LLC's credit, being used to pay the business' expenses, there is no question that you would be due reimbursement from the LLC.

However, absent an express agreement (whether in the LLC or a side agreement), it is open to serious question whether your co-owner could be held personally liable for reimbursement. Depending on the facts and circumstances, it is possible that you could prevail on a claim against your co-venturer insofar as he benefited as a co-owner from the use of your credit card to advance funds to the joint enteprise. This may be bolstered by the fact that were the LLC to go bankrupt, you would be the last in line for payment as an owner of the business. In any event, a fuller review of documentation and the business issues would be needed in order for me to express more detailed conclusions.

Re: Business Credit Card Debt

You can sue; but can you access assets. It also depends how the cards were taken, business and/or personal.

Re: Business Credit Card Debt

You need to find the answer in the terms of your LLC agreement.

If you cannot for some reason take it to the attorney who drafted your LLC, retain an attorney to review it with you. Good Luck!