What is the name of your state (only U.S. law)? Colorado
My business partner and I have a new LLC for investing in Real Estate. While were were in the midst of purchasing a piece of real estate, our bank closed our bank account. I found out the reason was based on my partner having past due child support. I thought our LLC protected our entity from his personal debts. The bank gave no notice of the closure. I simply found out when I went to set up a payment to our title company. We operate within the the law and have committed no deceptions or fraud. So I am surprised that the collection of his past due child support would cause our bank account to be closed. He did not use the bank account improperly and I manage the bulk of the financial transactions. We have not yet made a profit but have invested personal funds to get it started. They released the balance of our bank account to me after a few days. So now I have multiple questions about this. 1) Did the bank act according to the law by shutting down our bank account for his past due child support? The account was opened for the sole purpose of our business with our LLC created in the state. All that documentation was in the banks possession from the time we opened the account. 2)Do I need to dissolve the LLC and create an new one without my partner to continue? Again we have not made a profit as of yet, but were on the verge of doing so when this happened. I'm not sure of how child support collection laws may impact any business he may participate in. Because of that I am starting a new entity without him simply because it seems they can stop me from doing business because of his back child support as long as he's part of the business.
What is the name of your state (only U.S. law)?
My business partner and I have a new LLC for investing in Real Estate. While were were in the midst of purchasing a piece of real estate, our bank closed our bank account. I found out the reason was based on my partner having past due child support. I thought our LLC protected our entity from his personal debts. The bank gave no notice of the closure. I simply found out when I went to set up a payment to our title company. We operate within the the law and have committed no deceptions or fraud. So I am surprised that the collection of his past due child support would cause our bank account to be closed. He did not use the bank account improperly and I manage the bulk of the financial transactions. We have not yet made a profit but have invested personal funds to get it started. They released the balance of our bank account to me after a few days. So now I have multiple questions about this. 1) Did the bank act according to the law by shutting down our bank account for his past due child support? The account was opened for the sole purpose of our business with our LLC created in the state. All that documentation was in the banks possession from the time we opened the account. 2)Do I need to dissolve the LLC and create an new one without my partner to continue? Again we have not made a profit as of yet, but were on the verge of doing so when this happened. I'm not sure of how child support collection laws may impact any business he may participate in. Because of that I am starting a new entity without him simply because it seems they can stop me from doing business because of his back child support as long as he's part of the business.
What is the name of your state (only U.S. law)?