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Do all members of the LLC take responsiblity for the loan debt if the business fails?

April 26, 2017Business debt fails LLC loan members responsiblity

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Do all members of the LLC take responsiblity for the loan debt if the business fails?

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Answer Brad: I would think all of the members/partners of the business venture would be required to sign the bank loan. The SBA/a bank would require that all signing the bank loan would need to give collateral to the bank to be used in the event the business failed and the business defaulted on the business loan. Collateral WOULD BE most likely real estate/your personal residence(s) in which you and your partners have a substantial equity interest. As for the best ways to structure an LLC Operating Agreement as I am NOT an attorney I defer that to a local business attorney that you would retain in that regard.