Let’s talk about personal guaranties.
They come in all shapes and sizes.
We are not giving legal advice. To get that, you need to go to your own lawyer.
Personal guaranties can be a couple of lines. They can be an entire agreement.
You need to have your lawyer review and evaluate the documents, your personal situation and the situation of your company.
The Supreme Court, along with every court in the country, recognizes a company as a legal person. So, Corporations and LLCs are people or persons under the law. If you sign in the name of your corporation or your LLC, you’re insulated from liability.
However, people often sign personal guaranties without even realizing it. What this does is have the individual guaranty the obligations of the corporation. By signing, you’re making yourself liable along with the company.
When financial trouble comes, the party that had you sign can look to either you or the company for payment. You should also be aware of the term “boilerplate,” which you’ll hear often. Boilerplate counts. Read the boilerplate. Those provisions in a contract are binding, especially if there’s a personal guarantee involved.
Contact us at SmallBizReorg. We’re here for you.
