Comment by detourdog
3 months ago
My personal experience with LLC loans and banks is that the bank is using the assets as collateral and me as a backstop.
3 months ago
My personal experience with LLC loans and banks is that the bank is using the assets as collateral and me as a backstop.
I thought the whole point of LLC was to limit liability so you wouldn't be liable for debt beyond your paid up capital? Why would you ever sign a personal guarantee?
>Why would you ever sign a personal guarantee?
So that they will lend you the money...
It's not always required, depends on the amount and the business.
The liability I’m shielded from is not debt I specifically requested. I’m shielded from unknown events.
Why would the CEO have the personal liability here and not the board? Does Sundar Pichai have to personally guarantee loans for Google? That would be weird since the CEO could be fired.
1 reply →
banks are not stupid… you can’t just open LLC, borrow billion bucks, spend it and then be like “oops, LLC mates, not liable”
You can if you are Meta and are willing to litigate the hell out of it.
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"Me" in this case being a stand-in for the principal owner, which could be a corporation, individual, or group of individuals