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Responsibility for LLC Default

I am a signer on an LLC. If this account is closed due to negative balance fees, would I personally be reported to ChexSystems or is it just the business that would be reported?


Since you would only be an authorized signer on the account, your name should not be reported. If you are the only member of a single-member LLC and use your own Social Security number as the Taxpayer Identification Number for it, which is your right, that number would be reported if the bank reports the LLC for account problems. That will, of course, mean that there will be a hit on ChexSystems whenever your SSN is keyed into the system in an inquiry.

Published on BankingQuestions.com 12/03/08