Legal Question in Business Law in Ohio

partnership

I am going to file for bankruptcy. I was then going to form a partnership for a restaurant with a friend. Will my partner be liable if the restaurant fails and we have to go bankrupt? Can we separate the Company from personal assets?


Asked on 12/19/07, 10:45 am

1 Answer from Attorneys
J. Norman Stark J. Norman Stark , Attorney, Architect

Re: partnership

Dear About-to-File-Bankruptcy-Reader:

Be careful!!! If you file bankruptcy, you will not be permitted to do so again for 7 years!

Accordingly, forming a new partnership is flirting with disaster, since partnerships are like marriages, where each partner is personally and wholly liable for the obligations, debts, and liabilities of the other.

You are well advised to consider forming an LLC - a Limited Liability Corporation - for your new business - whereby each of your liabilities will be limited to the amount of actual investment made. This can be as little as a token or $500.00. Either Member of the LLC may then loan the LLC whatever funds are reqired to start the business, purchase needed equipment, supplies, etc., or even rent items.

My best recommendation is to consult and retain a good attorney ASAP to help you and to cover your assets!!!

Good luck.

J. Norman Stark

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Answered on 12/19/07, 11:14 am


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