I am a partial (35%) owner of a side start-up business, separate from my day job. I am only partially involved in the day-to-day operations of the business, with the majority owner (50%) pretty much running the show. The hope is that if/when the business gets financially stable enough, I can quit my day job and work full-time for the new business.
My partner, whom I do trust and have known for several years, just contacted me saying he is trying to secure a revolving line of credit for the business. For that, he is requesting some information from me such as DOB, monthly mortgage amount, equity amount in my home, and annual salary.
The information about my mortgage and equity gave me pause. We have a pretty large amount of equity in our house (live in Austin area), that is currently a pretty large safety net for us, as we have not been as diligent about saving as we should (aside from 401k), and I was out of work for a year or so which drained much of the savings we did have.
For a business line of credit, could I be personally liable and at risk of losing my house, if the business was unable to pay the line of credit back? I know LLC somewhat acts as a shield against personal liability for business debts, but it seems like there are exceptions.
Any advice would be appreciated.
My partner, whom I do trust and have known for several years, just contacted me saying he is trying to secure a revolving line of credit for the business. For that, he is requesting some information from me such as DOB, monthly mortgage amount, equity amount in my home, and annual salary.
The information about my mortgage and equity gave me pause. We have a pretty large amount of equity in our house (live in Austin area), that is currently a pretty large safety net for us, as we have not been as diligent about saving as we should (aside from 401k), and I was out of work for a year or so which drained much of the savings we did have.
For a business line of credit, could I be personally liable and at risk of losing my house, if the business was unable to pay the line of credit back? I know LLC somewhat acts as a shield against personal liability for business debts, but it seems like there are exceptions.
Any advice would be appreciated.