Lisa and the Law

Personal Guarantees by Members and Managers of LLCs eliminate personal liability protection for LLC debt

Posted on June 30, 2025

Members and Managers who sign personal guarantees for Limited Liability Company (“LLC”) debt will have to pay that debt if the LLC cannot or will not. Signing a personal guarantee is necessary for obtaining almost any credit or leasing any equipment, so as a business owner you will likely have to sign at least one or possibly many. Just understand what it means and make sure that this debt is paid by the LLC and it will never affect you.

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The information provided in this website is meant only as a general description of the current laws as of the date of the writing. It is not meant to be an exhaustive discussion of all the nuances of the law and is intended to be only an overview. Many issues may appear simpler than they are, and an individual should always contact an attorney to obtain a complete, accurate interpretation of the law given the individual's particular circumstances. Thompson Law Group, P.C. makes no representations as to how the law would affect a particular situation and intends only to illustrate areas of concern and give general information.

Published: June 30, 2025 , Last Updated: September 30, 2025