Legal Question in Business Law in South Carolina

separation as officer from LLC

I am a 25% partner in a South Carolina LLC. The business is on the verge of bankruptcy. In September my partner suggested I leave because, as he put it, '' we can't pay you ''. Since I had received no compensation in some time , I have returned to my home in Georgia to start anew. My primary concern are business credit card debts of the company, applied for in my name as an officer of the LLC, That total around $60,000. They do not appear on my personal credit reports but I am receiving collection calls about them since I sent in the applications for the business. The credit card collectors keep saying the debts are secured by my social security number. So I have two questions: How do I legally separate myself from this LLC? What is my personal liability for these credit card debts? Thank you for your time.


Asked on 10/21/08, 5:28 pm

1 Answer from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: separation as officer from LLC

Unfortunately, this is a common mistake. Just because a credit card has a business name on it does not mean that it is a credit card that belongs to the company. So, most likely, you are personally responsible to the credit card company. Assuming that SC law is similar to GA law in this area, you can certainly seek some compensation from the other members of the LLC, but that will not stop the credit card company from going after you.

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.

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Answered on 10/24/08, 12:26 pm


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