Legal Question in Credit and Debt Law in Massachusetts
Debts incurred by parent in a business
Can I be held responsible for charges my father made to his personal credit card and equity loan if I 1). am a 25% owner in his business, 2). the charges were for the business 3). I was not consulted or involved in the purchases? I have never been listed as a part owner or been allowed to sign any checks or agreements as a representative of the propietorship. My father has made all the decisions and my 25% equity is a personal contract between us that he ignored upon signing. I have never received any portion of the profits and I have only been paid as an hourly employee. My mother is still alive and is listed on all accounts.
1 Answer from Attorneys
Re: Debts incurred by parent in a business
It really depends on the type of business entity your dad's company is. Generally speaking, the major classifications of business entities are:
1) sole proprietorship, 2)partnership, 3) limited partnership, 4) limited liability partnership, 5) limited liability company,6) business trust 7) corporation ( C-Corp, S-Corp, Professional Corp etc). Each entity has various rules as to the liability of its partcipants. However, if in fact your dad took a personal loan or line of credit from a lender and made a subsequent capital infusion into the "business entity", unless you were a co-signer on such obligation, I query whether you would be liable. Please call my office direct for a free initial consult based on the specific facts of your situation.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
