A liability for which no person is responsible, only the property securing the debt can be used by the lender to satisfy the debt. For example, if your LLC buys real estate, it may be able to secure non-recourse financing where no Member is personally liable as a guarantor on the debt. If your LLC is taxed as a partnership the partnership tax allocation rules could have important implications to which Members may claim a tax deduction for interest and other items related to this financing.
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