I keep telling ya’ll to set up your business in a legal-legit-tolegitotquit kinda of way. (Shout to MC Hammer)
But… insert deep sigh here.
Ya’ll gon learn.
Alright… here’s how it works for those of you in marriages
common law situationships.
Anywhoo…. If you fail to take the necessary steps this could cost you big time.
If you are business owner and you happen to loose your business and YOUR bae, they too could be held liable for outstanding business debts.
Side note: this a COMMON thing. Most experienced treps will tell you they’ve lost relationships due to their commitment to their businesses. There really should be a dating app for entrepreneurs. Or at least a matchmaker? lol
but I disgress. THE HOW: (1)You are a sole proprietor or general partner in a partnership. This puts UNLIMIITED personal liability for your business debts. (2) You or Your Spouse Cosign or Guarantee the Business Debt.
It doesn’t matter what he said.
It doesn’t matter what she said.
Once you put your SSN and John Hancock on that document, and IF the business is unable to back the debt….. you are personally responsible for the remainder of the debt.
Don’t let this be you! Take the necessary steps to set your business up properly.