Legal Question in Business Law in Ohio

My dad and I started an llc in 2006 our company was doing great we were growing and everything seemed great but then I found out that my dad had been taking more money then we had profit and he put our company in debt to our supplier whom we have a personal guarantee with the company began to demand their money but we didn't have it they said that they were going to take us to court and take everything that we have I was able to talk them out of doing that and over the past year our company has been able to pay our balance down from $119,000 to $86,000 I just got maried and my wife and I just bought a house I was worried about our llcs debt and our supplier maybe wanting to stop working with us in the future so my wife put the house in her name on the title and the loan so my questions are

Since our house isn't in my name can it be considered an asset of mine that could be taken by our personal guarantee with our supplier

And since I didn't take the money from our company is their a way to get my name off the debt and everything else that is tied to our llc (like can I sign over my 49% to my dad and he can assume all debt) he said that he would since none of this is my fault


Asked on 11/30/10, 7:45 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I recommend having all paperwork reviewed. The personal guarantee will not be released as to you unless the supplier agrees (in writing). Whether your house is shielded depends on a great many details too numerous to mention here. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 12/06/10, 10:25 am


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