shut down a business
we closed down a small partnership for a transportation business. we have some advertisement bills. Somebody told me that we are not responsible of these payments because they are billed to the business not to us since business is no longer exists. Could you please tell me if this is true? if not what obligations do we have to fulfill? and if no payments are made does it affect our credit rating?
thank you,
Re: shut down a business
No, it's not true; partners in a general partnership are jointly and severally liable for partnership debts. The creditor can sue either or both of you. If your business had been an LLC or corporation, it would be more difficult for the creditor(s) to come after you personally, but it's not impossible even then. You can't just shut a business down or sell it off and leave the creditors holding the bag.
Re: shut down a business
No, it's not true; partners in a general partnership are jointly and severally liable for partnership debts. The creditor can sue either or both of you. If your business had been an LLC or corporation, it would be more difficult for the creditor(s) to come after you personally, but it's not impossible even then. You can't just shut a business down or sell it off and leave the creditors holding the bag.
Re: shut down a business
No, it's not true; partners in a general partnership are jointly and severally liable for partnership debts. The creditor can sue either or both of you. If your business had been an LLC or corporation, it would be more difficult for the creditor(s) to come after you personally, but it's not impossible even then. You can't just shut a business down or sell it off and leave the creditors holding the bag.
