Can a homeowner sue you personally if your business was an LLC?

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Can a homeowner sue you personally if your business was an LLC?

My business was an LLC with a DBA then my name. I went out of business due to economy and homeowner is suing me saying I didn’t complete the job. A lawyer from my ins. comp. was given to me and he is telling me to try to sell my truck/personal belongings to get some money to settle out of court. I have no other assets. But I heard if your business was LLC then they cannot come after you personally. Just need some advice.

Asked on January 11, 2011 under Business Law, South Carolina

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The theory behind forming a Limited Liability Company IS to limit personal liability to the assets ofthe LLC.  They are a hybrid of partnership and corporations law, allowing more flexibility than corporations do but with more protection than partnerships.  A person in the LLC is called a "member" and generally speaking members can not be found personally liable for corporate debts.  Here the "DBA" may be the issue and local case law may need to be reviewed to see if adding this in some way exposed you personally or rather allows a plaintiff "pierce the corporate veil" of sorts to go against you personally.  You should speak with a corporate attorney in your area.  Good luck.


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