An LLC Liability question on which I need clarification

3 Replies

Good evening everyone,

I just have a question about my LLC. What the personal liability of the LLC are, for persons not contributing to the LLC; none right? Even those these people contribute "sweat equity, but do not add any of their money to the investment. Please let me know if I need to elaborate even more. Thanks for your help.

Sounds like you may have concerns about "partners" and whether or not what they do can obligate your LLC to pay something. The short answer is YES.

A good answer requires a lot more facts.

Andrew, some more information would be helpful for sure. If they are a partner in the LLC and "own" a percentage of the company then they would be held responsible for that percentage of loss... If they are not a member and are contributing work and do not have a percentage of the company then they would be an employee of the company and be paid a wage... That is the super simple interpretation and in no way legal advise. Talk to a financial expert they will give you a better answer. You can go to to find a score mentor. They are completely free and a great resource to help out small businesses across the country.

Thanks Tom and Aaron, I appreciate it.

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