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Discussion in 'Business Operations' started by RD592, May 17, 2006.
I am wondering if someone sues a llc company, can the owner of the llc company get personally sued.
No. The Limited Liability Company is basically a one time fee of..... I think it was 125.00 here in MO. Nobody can come after any of your personal assets. They can come after anything in your company. Oh yeah, LLC won't stop the IRS either! Good luck
Yes, anyone can get sued. Whether it upholds in court is another thing. It's called "piercing the corporate veil".
Just so you know there is no legal means to escape liability for your own actions. LLC and other arrangements only protect you from the actions of your employees.
If your company (you) is a LLC, aren't you considered an employee of the company? I thought that was the point of registering as LLC vs. sole proprietor.
It is confusing, it depends what kind of LLC you set up, so you might check into a member-based LLC where you are like a member of the board. Granted it is funny because you're the only member, but that is ok legally.
As for liability, technically speaking the LLC stands fully for the liability so they can take all your company but they can not take your car or your house BUT... This is technical, if you're using a part of your home for your business then if 10% of your home is being used thusly then this belongs to the business.
To simplify the matter, as an LLC they can take your business but they can not come after you. Still, like someone already pointed out, it is not impossible, it is a bit of a shield but it doesn't make you invisible or free of all liability, you can be and still are accountable for your actions.
It's crazy but as a rule when a lawyer sees that you are an LLC, they like to shy away from it because they're as confused by the legalese as the rest of us are. Keep in mind this works for both prosecuting AND defense attorneys so if you do get in trouble, I have found it is then mostly up to you to defend yourself, which can be good or bad, you never know.
So form the LLC to keep the riff-raff away, then watch yourself so you don't get in trouble
THAT is insane!
Unfortunantly you are always liable for any work you personally do even if working for someone else. The corporate will protect you if the company is sued but there is always the option of sueing you directly and there is no protection from that. Granted most lawyers wont sue you directly unless they smell a large settlement. They almost always go where they think the money is.
A recent case for my employer involved a tech who was ordered by a supervisor to bypass a large fuse with a piece of pipe.(really DUMB) Naturally the machine caught fire and several employees were injured. My employer is suing that tech because he should have known better. The tech could end up losing it all. (a very FU'd situation to be sure)
I was just curious because my dad was self-employed for 40+ years repairing and maintaining car radios, and did it as a sole prop. That is appealing to me for simplicity's sake, but I know times have changed, and he was in a pretty non-threatening job (as far as damages to people/property.) So, I still haven't decided which way to go.