3 ms·

I thought the whole point of LLC was to limit liability so you wouldn't be liable for debt beyond your paid up capital? Why would you ever sign a personal guara

by mcny 11mo ago

I thought the whole point of LLC was to limit liability so you wouldn't be liable for debt beyond your paid up capital? Why would you ever sign a personal guarantee?

bdangubic 11mo ago
banks are not stupid… you can’t just open LLC, borrow billion bucks, spend it and then be like “oops, LLC mates, not liable”
- htrp 11mo ago
  You can if you are Meta and are willing to litigate the hell out of it.
  - hrimfaxi 11mo ago
    Do you think any CEOs of gigantic corporations are personally liable for any loans made by the companies they work for? I would be incredibly, incredibly surprised to hear if that's the case.
  - svnt 11mo ago
    More like if you are Meta and are viewed as a lucrative business opportunity by the bank.
  - YetAnotherNick 11mo ago
    Then why don't they do it? It's the easiest money they can ever make. Even I can litigate the hell out of it if I get $27B, take the money and close the LLC.
  - notatoad 11mo ago
    “If you are meta” in this case means “if you have a billion dollars already, and a credit rating that you don’t want to destroy. Nobody is trying to pull one over on a bank here. Pricing the risk of the loan is a bank’s whole business, they’re happy to loan to meta because meta is meta, and they’re a good candidate for a loan.
    - solatic 11mo ago
      > if you have a billion dollars already Meta has $44.4 billion in cash-on-hand as of September 2025. I'm correcting you because people can't really fathom just how wealthy these companies are. They could buy startups for billions of dollars with literally the cash they have in their bank accounts, let alone debt or stocks.
detourdog 11mo ago
The liability I’m shielded from is not debt I specifically requested. I’m shielded from unknown events.
- hrimfaxi 11mo ago
  Why would the CEO have the personal liability here and not the board? Does Sundar Pichai have to personally guarantee loans for Google? That would be weird since the CEO could be fired.
  - svnt 11mo ago
    No, but this person’s LLC is not capitalized quite as well as Google, and the bank is adjusting the loan to account for that fact.
hattmall 11mo ago
>Why would you ever sign a personal guarantee? So that they will lend you the money... It's not always required, depends on the amount and the business.
- deleted 11mo ago
  [deleted]

by mcny 11mo ago

I thought the whole point of LLC was to limit liability so you wouldn't be liable for debt beyond your paid up capital? Why would you ever sign a personal guarantee?

bdangubic 11mo ago

banks are not stupid… you can’t just open LLC, borrow billion bucks, spend it and then be like “oops, LLC mates, not liable”

htrp 11mo ago
You can if you are Meta and are willing to litigate the hell out of it.
- hrimfaxi 11mo ago
  Do you think any CEOs of gigantic corporations are personally liable for any loans made by the companies they work for? I would be incredibly, incredibly surprised to hear if that's the case.
- svnt 11mo ago
  More like if you are Meta and are viewed as a lucrative business opportunity by the bank.
- YetAnotherNick 11mo ago
  Then why don't they do it? It's the easiest money they can ever make. Even I can litigate the hell out of it if I get $27B, take the money and close the LLC.
- notatoad 11mo ago
  “If you are meta” in this case means “if you have a billion dollars already, and a credit rating that you don’t want to destroy. Nobody is trying to pull one over on a bank here. Pricing the risk of the loan is a bank’s whole business, they’re happy to loan to meta because meta is meta, and they’re a good candidate for a loan.
  - solatic 11mo ago
    > if you have a billion dollars already Meta has $44.4 billion in cash-on-hand as of September 2025. I'm correcting you because people can't really fathom just how wealthy these companies are. They could buy startups for billions of dollars with literally the cash they have in their bank accounts, let alone debt or stocks.

detourdog 11mo ago

The liability I’m shielded from is not debt I specifically requested. I’m shielded from unknown events.

hrimfaxi 11mo ago
Why would the CEO have the personal liability here and not the board? Does Sundar Pichai have to personally guarantee loans for Google? That would be weird since the CEO could be fired.
- svnt 11mo ago
  No, but this person’s LLC is not capitalized quite as well as Google, and the bank is adjusting the loan to account for that fact.

hattmall 11mo ago

>Why would you ever sign a personal guarantee? So that they will lend you the money... It's not always required, depends on the amount and the business.

deleted 11mo ago
[deleted]