Legal Question in Business Law in New Jersey

The individual members (owners) of an LLC are not liable for its debts by virtue of having an ownership interest. The same is true for managers whether they are owners or not. However, it is common practice for a lender to require a personal guarantee on a loan if the LLC does not have the assets to secure the loan. If there is such a personal guarantee, it is a personal obligation. Similarly, a spouse is not responsible for a spouse's personal business debt but may be obligated if the debt is guaranteed by a security interest in maritial property. So, the message is that it is necessary to look deeper than just the LLC.

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

Usually, no. If the president signed a personal guarantee (most lenders will want that) then the President will be liable; same for his wife, if she signed a guarantee she is liable. but usually, no.

There are a few other situations when the president and his wife might be liable. You would have to talk to a lawyer about this.

Give me a call if you like. Sounds like you may have a problem.