§ 54239 Member Debt Liability Limit

• •If you own part of a company (like a member or stockholder), you don’t have to pay the company’s debts with your own money.
• •The most you can lose is what you still owe for your membership fee or the stocks you bought.
• •If you promised to pay later (like with a note) and haven’t paid yet, that’s the max you might have to cover.

You buy $100 worth of stock in a small business but only pay $60 upfront, promising to pay the rest later. The business goes broke and owes money.

You only have to pay the $40 you still owe for the stock. You don’t have to pay the business’s other debts with your own money.