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Q: LLC, Credit Card Debt ( No Answer,   1 Comment )
Question  
Subject: LLC, Credit Card Debt
Category: Business and Money > Small Businesses
Asked by: rockhard3232-ga
List Price: $2.00
Posted: 21 Jul 2006 16:00 PDT
Expires: 20 Aug 2006 16:00 PDT
Question ID: 748401
Hello,

I recently formed a LLC in the State of California and when doing so,
my partner signed the Articles of Organization as the "registered
agent". After which, I sent information claiming both as members of
the LLC. Months later, we signed a document which stated that he was
relinquishing ownership duties, but would fulfill a management
position.

That was then. The case now is bleak. We had an AMEX account with two
cards, one for me, the other for him. I was the main account holder
however, and now I'm in a position where he's charged around $8k in
unbusiness related spend and I'm not sure if he can pay. I'm trying to
play it cool, so he pays his debt, and then I'm dropping him
altogether.

The question: If he cannot fulfill the responsibility to pay his debt,
is it the burden of me to do so, even as a LLC? Also, his credit card
has his name on it, and social, plus I have emails proving he agreed
to pay for his debt.

Any advice helps
Answer  
There is no answer at this time.

Comments  
Subject: Re: LLC, Credit Card Debt
From: gregaw-ga on 24 Jul 2006 08:25 PDT
 
Whoever the credit card bills/statement is sent to is usually the one
responsible for payment.  If you are solely responsible for the LLC
then you owe the money.  I've had company credit cards before with my
name and information on it, but it is the company that is responsible
to pay for it.

I signed my life away to my employer to get the credit, stating that
if I misused it I would pay for everything, but that was between me
and my employer.  As far as the credit card company is concerned it is
the business that owes them the money.

The emails may help you if you have to take this guy to court to get
your money out of him, but you will be the one liable for to the
credit card company.

You're on the right track to get rid of him as soon as possible.  I
hope the credit card is already cut up.

Good Luck!

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