bankruptcy
Law firm gave credit to incorporate but business never got off the ground are we liable for debts?
<p>Our firm never went into business and made no revenues in the tax year 2017. The business was given credit by a law firm for simple services like incorporation. If the firm has 34,000 in debt that is now due in June (the firm agreed to pay this debt at a later point, when the engagement was commenced) does the firm have to pay it?</p>

<p>What alternatives does the firm have? Can it file for bankruptcy and if so, what are the implications for the owner of the firm?</p>

<p>It would to a large extent depend on whether the company is an LLC or protects the owners in some other way. </p>

<p>A lawfirm would probably think twice about entering into a contract with an LLC which cannot be forced to pay when it has only debts. You might find in the smallprint of your contract with the lawfirm that you are personally responsible for paying the lawfirm.</p>
