Legal Question in Business Law in Georgia

llc responsibilities/personal guaranteed debt responsibilities

4partners/Ga.llc/restaurant.P=partner.P1=28%,P2,3,4= 24%.$150,000 SBA and $113,000 construction loan Leased space. Loans personally guaranteed by each.

P1-P2equity-rental properties-cash/P1=LLC Manager.

P3-P4=VPops./rest. managers

Revenue=$500,000.00 first 8 months/Food/Labor cost 95% of revenue.

P3-P4:signed for unauthorized debt-refused to complete daily accounting-Instructed accountant to “write off charge accounts-Refused to do inventory,reduce labor/food/theft/waste-Ignored budjets-Refused to change menu,stop drinking alcohol Ordered food,alcohol and set work schedules without calculating cost-P3 Listless,lazy,obstructive-

P3 released as Ops manager-P4 resigned 3 months later

P3 consulted attorney who sister works for-being deceitful. Questions=Are all responsible for % of cash and credit card debt?How to press criminal and/or civil charges against P3?Can P1-P2 lien or encumber P3-P4 personal assets/garnishment?

Can P3-P4 be held responsible for their unauthorized debt?Does P3 have any recourse because of termination? P1-P2 cannot afford to hire an attorney?

P1-P2 extending SBA loan from 7 yrs to 15 and require P3 - P4 to pay - plus 5 add. yrs to cover other debt? (does not include $130,000.00 cash by P1-P2)


Asked on 11/02/07, 7:12 pm

3 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: llc responsibilities/personal guaranteed debt responsibilities

Your situation is far too complicated for the general information nature of this board. Even if your post could be deciphered, it only confirms you need a laywer to give you specific advice.

Read more
Answered on 11/04/07, 5:28 pm
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: llc responsibilities/personal guaranteed debt responsibilities

Considering the number of members, the amount of money and the complicated facts, you should consult with a local business attorney and have him/her review all relevant documentation, including the LLC operating agreement. Generally, your rights and obligations will be set out in the operating agreement and similar documents.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

Read more
Answered on 11/05/07, 7:59 am
Charles W. Field Charles W. Field, Attorney at Law

Re: llc responsibilities/personal guaranteed debt responsibilities

While this may seem like a simple math problem, the truth is that more facts and details need to be examined than you provided. Consult with a local attorney.

Read more
Answered on 11/07/07, 5:04 pm


Related Questions & Answers

More Business Law questions and answers in Georgia