Legal Question in Business Law in Alabama

Loaning Money to the Business

I asked a frined to loan me the money to purchase a piece of equipment for the business I was starting. He instead set up a new company-a corportation. He then loan all of the start up cost and operating cost to the corporation and he wants me to sign a prissory note making me liable to repay it. Am I liable to repay the loan that he loan to the company? Also he states that we have a partnership. Is that true if there is a corporation? I am so confused.


Asked on 10/20/07, 9:21 am

1 Answer from Attorneys
Nasir Mahmood Bhatti Prudent Legal Professionals.

Re: Loaning Money to the Business

hello:

dear compeny is a seprate legal entity apart from your personal capacity.now you have not clearified wheather you have taken that loan in a personal capacity or as the adminstrator of the compeny.

is there any document through which he has lended you the money?.kindely send a copy of it so that i can asertain your status.

is there any document there mentioning the partnership status or not?

you are not responsible to pay back the loan taken by the compeny.it is the liability of the compeny to set off all the loans and debts.

nasir mahmood bhatti advocate

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Answered on 10/23/07, 12:16 am


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