My jurisdiction is: Washington, USA
My jurisdiction is: Washington, USA
I am considering forming a business partnership with someone. I have been very impressed with her experience and consider her potentially to be a very valuable person to have in a partnership.
Today, however, I learned that she may possibly be declaring personal bankruptcy soon. I've not inquired into the exact details of how this has come about. She mentioned back taxes and the IRS, and said something about consumer debt not being part of the issue, but that's about it.
My question is: if we form a partnership, could her personal debt affect the newly formed partnership? Does it matter whether bankruptcy is filed for prior to or after the formation of the partnership? Lastly, does business entity choice matter in this situation (general partnership vs limited liability forms (LLC, LLP, C-Corp, S-Corp, etc))?
Thanks.
My jurisdiction is: Washington, USA
I am considering forming a business partnership with someone. I have been very impressed with her experience and consider her potentially to be a very valuable person to have in a partnership.
Today, however, I learned that she may possibly be declaring personal bankruptcy soon. I've not inquired into the exact details of how this has come about. She mentioned back taxes and the IRS, and said something about consumer debt not being part of the issue, but that's about it.
My question is: if we form a partnership, could her personal debt affect the newly formed partnership? Does it matter whether bankruptcy is filed for prior to or after the formation of the partnership? Lastly, does business entity choice matter in this situation (general partnership vs limited liability forms (LLC, LLP, C-Corp, S-Corp, etc))?
Thanks.
