Can minority owners take out loans in the business’ name? I’ve been doing some free-lance work for a very small business (1 owner &lt;$2,000 revenue annually) for a couple of years and I’ve done most of the work on the business as the owner just sort of happened upon the opportunity. 

The owner had “moved on” and offered me the business essentially for free, with the exception of lawyers fees to structure an ownership agreement where he retains 5% of the business. 

My biggest concerns are incurring some sort of hidden debt, or enabling him to add debt to the business as a minority owner.

Are these fears legitimate? Can a minority owner take out a loan? Would I be liable if period debt the business has if he were hiding something?

Thanks in advance!