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    3 Replies Latest reply on Feb 9, 2010 10:30 AM by UncleLeon

    Should I get a personal guarantee from an LLC?

    geobiz Wayfarer
      I've done work for an LLC in which I was not paid and never will be. I was told that I should have had a personal guarentee signed by this client. I have been asked to put in a cost estimate to another potential client that is an LLC. I currently have the Cost Estimate signed by the person authorizing the work, title, and company name. When I'm unsure of the client I have them sign the pay sheet when the services are completed. What should I have an LLC sign and what should it say?
        • Re: Should I get a personal guarantee from an LLC?
          UncleLeon Scout
          It would be rare that an officer of a corp or LLC wouild give a personal guarantee for routine work. If you're building a new building for them, that's another story.

          You haven't mentioned the nature of your work. However if the type of serv ice you're providing lends itself to it, you may establish a policy of requiring a "Retainer" to apply toward the final bill. If you are providing lengthy service (for example, a service for three months), you could require intermediate payments.

          Now, as to the deadbeat who didn't pay you, I suggest 3 steps (advising yout deadbeat client in advance that if payment is not made you will do the following). One...sue in small claims court. Two,...alert others in your field that the "client" is a deadbeat, and two spread the word by internet*.* However be certain that you state the FACTS ONLY, to avoid a law suit
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