Would a ch 7 personal bankruptcy discharge business(LLC) taxes and fees?

[aimhighlow]

My LLC owes the city business license division $100 for the business license renewal. I have been talking to them about trying to pay it but would this fee be discharged in my bk? And I will still be able to obtain a new business license in the future with a new business?

I also have IRS late filing penalty fees of $400 that I owe on my LLC. I have also been talking to the IRS about trying to pay. Would these taxes be discharged?

If both fees can be discharged, would it be okay to discharge both government entity debts even after telling them i'd try to pay?


Thank you in advance.

[frogger]

You can file a 7 to discharge your personal liability for corporate debt, but a corporation can not obtain a discharge.

[HHM]

As pointed out, the LLC does not receive a discharge, so the LLC will still owe the debt. Given the amounts we are talking about, no point in getting too elaborate, just pay them when you can.

so, your personal BK will not discharge the LLC liability.

[jst4f]

This is not clear to me. If the LLC has no assets and your personal liability has been discharged, what can be done to you if you don't pay the debt? I realize that the IRS my be an exception so in general what can a creditor do?

[frogger]

This is not clear to me. If the LLC has no assets and your personal liability has been discharged, what can be done to you if you don't pay the debt?

Nothing, as you are discharged from your personal liability. However, if the corporation remains open and doing business, any assets of the corporation would be fair game. It would be best to dissolve the corporation and start fresh.

[AngelinaCatHub]

You owe 100 for a City license renewal? If so, has the LLC done any business after you filed BK? If not, tell the City you are BK-ed and do not wish to renew as the LLC is no functioning and is also BK by way of you, and will be dissolved soon as it is insolvent. I don't think the City would push it for 100 bucks. The IRS is a different story. Pay them as soon as you can. 'Hub

[jst4f]

Nothing, as you are discharged from your personal liability. However, if the corporation remains open and doing business, any assets of the corporation would be fair game. It would be best to dissolve the corporation and start fresh.

That is what I thought but I wanted to be sure. Thanks for the reply