Legal Question in Business Law in Texas

If I form an LLC for an apartment property and personally guarantee the loan (since most banks won't find without one), will my personal assets be at risk if someone sues the LLC? For example, someone got hurt in the property and wanted compensation. Will paying off this individual be similar to paying a debt and will they have a right to go after my home and bank accounts?


Asked on 7/03/14, 3:42 pm

1 Answer from Attorneys
Steven Frankoff Law Offices of Steven Frankoff

What follows is NOT legal advice or an acceptance of representation, but merely an informational and generalized response to in inquiry.

The answer to your question is - NO. If you form an LLC, and a 3d party, brings an action, not the lender, then your LLC should protect your personal property. That does not mean that that 3d party cannot sue you personally, in addition to the LLC and get a judgment v you both. Of course they would have to have some legal grounding for their action, apart from just participation in the LLC. Remember LLC's / corporations etc. only work to a limited degree, you have to comply with all of the regulations and requirements necessary to keep them operative, and binding. Another bid of generalized advice -BUY AN INSURANCE POLICY

The response given above is not meant to be legal advice, or an act of representation, or an acceptance of representation, but merely an generalized response to an inquiry in regard to a general legal question.

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Answered on 7/03/14, 5:58 pm


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