Legal Question in Business Law in Virginia

Closing LLC
I own an LLC and am in debt about $60,000 to creditors. I have had the business about 5 years and have never made a profit. I have invested about $120,000 over the years plus a personal credit card that is at $20,000 (all business expenses). I want to close the company and pay off this personal credit card, I also need to pay back some other personal sources in which I received money to invest. Can I pay myself some of the money I invested and then try to pay off a percentage of the other debt. I believe that if there is nothing left in the LLC when I close in a couple of months that there is nothing for creditors to come after. Is this correct, or can I get in trouble for trying to get some of the money invested back first?

Asked on 5/27/09, 8:15 pm

Michael Hendrickson Law Office Michael E. Hendrickson

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Re: Closing LLC

What you've proposed "in trying to get some of the money invested back first" would likely be viewed

as a fraud on your creditors and would most likely not be allowed to go unchallenged.

Answered on 5/31/09, 12:24 pm

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