Legal Question in Business Law in New Jersey

Re: business

If your question is whether the limitation of liability conferred by the LLC form will protect you from this creditor, the answer is no. You should consider this to be one reason why you should have your lawyer review the documents of formation for the LLC, particularly the Operating Agreement. To get the maximum protection that you can, you should get an undertaking by the LLC to repay this loan from LLC income and assets and you should have the LLC agree to indemnify you for any loss that you incur as a result of this loan. You also need to have your lawyer carefully check any security instruments that might apply to the tanning beds to be sure that you can transfer them to the LLC. If not, you could probably rent them to the LLC with only a little more complexity.

My firm handles matters of this type, however it may be easier for you to work with a lawyer whose office is closer to you. If I can be of further help to you, call or email. If you remind me that the contact was through Lawguru, the first consultation will be free.

See also: http://info.corbettlaw.net/lawguru.htm