Consider a personal guarantee when extending credit to an LLC or Corporation
If you are extending credit to or working for an LLC/Corporation on a long project, consider asking the owner or one of the owners of the business to sign a personal guarantee. A personal guarantee allows you to collect from the owner of the business IF the business does not pay your bill. An owner should not have a problem signing a personal guarantee if the business is going to pay your bill. Note: I always try to avoid having my client’s sign a personal guarantee, but the reality is they generally have to guaranty payment by the business at least for a period of time.