Q: I just closed my LLC and money is tight. If I don’t pay the final phone/cable bill, will it affect my personal credit
A:
If you've closed your LLC, your business's debts and financial obligations should typically remain separate from your personal credit. However, there are some factors to consider.
First, review the terms of your phone/cable contract. If the contract was in your LLC's name and not personally guaranteed, the business's failure to pay shouldn't directly impact your personal credit. However, if you personally guaranteed the contract, it could affect your personal credit.
Second, keep in mind that if your LLC owes a significant debt, creditors might try to collect by pursuing legal action against your business assets or assets held in your name. While this may not directly affect your credit, it could impact your personal finances.
To safeguard your personal credit, consider settling the outstanding bill with the phone/cable company or negotiating a payment plan if needed. This can help prevent potential legal actions that might affect your personal assets and credit standing in the long run.
It's always advisable to consult with an attorney familiar with business and credit matters in your state to get specific guidance tailored to your situation.
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