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Question
Hello, I am in the process of dissolving My LLC after my advertising DBA failed. I have outstanding debt to vendors through the franchisor of the DBA and I have collected deposits for advertising from clients I will not be able to return. My attorneys advise me to dissolve the LLC and they state only the LLC is responsible for the debt not me personally. The LLC has no assets and I did not personally guarantee any of the business debt. Do I have any personal liability here?
Thank You
Jason:
Thank you for your inquiry. Sorry your business venture did not fare well. Without benefit of knowing what state you are in or what the covenants are of your franchise is, it is fair to assume that this matter will just simply go away. If when you say attorneys are advising dissolution, I hope you mean liquidation of assets. Although I am not an attorney and the entirety of this comment is not meant in any way to be legal advice, in my practical experience while outstanding debt exists why would you remove your corporate veil? As for personal guarantee, I suppose any risk of exposure would be subject to the clients opinion as to whether or not deposits were taken by you (or your associates) knowing that your organization accepted those without intention of delivering services. In the case of your vendors, if those liabilities are construed as being yours, then you would be on the hook to pay them. I am very curious to know which franchise you have, our firm works with several like franchisers in the ad/mailer industry and maybe we can help you through our relationships. I hope this is helpful and if you would like to chat more about your situation simply e-mail me through this forum or call our firm SettleSource.com
Respectfully,
Christine Janklow
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Answers by Expert:
Christine Janklow
Expertise
As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.
Experience
My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.
Organizations
Provisors;Turnaround Management Association; Los Angeles area
Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."
Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising
Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.
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