Legal Question in Business Law in Texas
Limited Liability Company
I have 2 businesses formed as 2 separate LLC's. Question is IF one of my business fails and has to file bankruptcy, will it affect the other LLC, or it is protected. Thanks.
Also, if the LLC go into bankruptcy, will they be able to attach any personal assets?
2 Answers from Attorneys
Re: Limited Liability Company
You shoud speak with an attorney to make sure that he/she has all of the facts to properly answer your question.
Generally, as long as accurate and separate records are kept for each LLC showing
no co-mingling of funds, then one LLC's legal action will not affect the other.
With respect to the attachment of personal assets, generally, a member's risk of loss is limited only to the amount invested, which is one reason why an LLC is favored over a general partnership.
Re: Limited Liability Company
The action of one LLC should not affect the other, so long as the proper formalities have been observed. Your personal assets are shielded unless you've been using the LLC as your own personal piggy-bank.
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