Ok, me and a partner have an llc. After several months of losses and not being able to turn things around, we decided to close the company. The problem I see is that we still have some outstanding debts. The biggest one being a copier lease, which we have been told that if we cancel, we have to pay the entire lease which is somewhere around 20,000. Obviously we don't have that kind of cash. When the llc closes, are the debts included or do me and my partner personally have to pay them, and if that's the case, if we can't pay, then what happens???

Luckily you chose to be an LLC. You're only liable to the amount of money you invested. Unfortunately because your liabilities exceed your equity, when you liquidate all your assets -- you and him both get nothing.

You need to pay off as much of your debt as you can and tell them your business is no longer running. In turn, they have to write off the difference on their books, but will probably try to come after you personally. It may be an aggrevation but there is nothing you can do -- the venture failed. That's why small businesses are a high risk.

I suggest consulting with a lawyer.

Check the terms of your lease agreement too and make sure you and/or your partner didn't sign a personal guaranty. If you did, you would be personally stuck for that debt. Hopefully you didn't!