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so i get this question a lot from my business clients that are maybe thinking of winding down their llc or closing it or just you know theyre starting to rack up some debt and thinking well if this goes south um do all these debts affect my personal credit and the answer is it might it really depends on the type of the debt and the circumstances behind you know why youre closing the entity right so llcs the appeal with an llc is it it is this hybrid editing where it provides you limited liability protection that you might get with a corporate structure but you do have a little more flexibility in operations and certain tax benefits with having an llc right so llcs can be passed serenities theyre less formalities under state law so an llc can or cannot have an operating agreement its recommended it does have one but it doesnt have to do as much kind of admin as a corporate entity would so you dont have to do shareholder meetings you dont have board of directors meetings you don