Question by  Ney (23)

How to dissolve an llc in debt?

I need to understand the legal considerations of dissolving an llc that has a substantial amount of debt.


Answer by  mammakat (11147)

This needs to be done through the courts, and you need to determine if you need to file bankruptcy. You need to know your assets, and each person's stake financially.


Answer by  Dean (4035)

There are a host of considerations, especially with regard to the nature and age of the debt. Consult with an attorney as to how best to proceed.


Answer by  Danielle2480 (247)

In an LLC, each partner is limited to the debts of the business up to the amount invested in the business. It is important to consider what debt has been incurred, how much capital you have to liquidate to pay this debt and your invested loss.


Answer by  chuvixa8182 (266)

If you have not yet commenced business operations, then dissolution of the LLC is easy. However, it is far more complicated if you have been an operating business and owe creditors. Members of the LLC must agree to dissolve the business, members must vote on a plan of dissolution, and must obtain a letter of tax clearance from state authorities.


Answer by  Davide (5)

If the LLC has a huge amount of debt and cannot pay its debtors it can file for bankrupcy. The precise legal consequences depend on the jurisdiction you are living in. Usully the llc legal form protects the owner of the comoany from personal liability in case of a bankrupcy or related procedures.


Answer by  Jenny25 (939)

Well the best way to dissolve an llc in debt is to talk to a lawyer and get some legal advice about this. You cant really dissolve the llc into debt without an application and legal inquiry.


Answer by  Deepali (68)

Well,you have to figure out how many person are in stake. They go to court to dissolve an LLC. You can also purchase the interest in the LLC or you can offer your own buisness interest for the sale. Its depend whether you need to stay with your buisness or not

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