Does timing of an LLC affect issues that happened before filed?

UPDATED: Oct 1, 2022

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Does timing of an LLC affect issues that happened before filed?

Issues with a contractor, he stopped work on our home one year after beginning. He refuses our phone calls and avoids meeting with us. Since the last time he WAS here, he filed for an LLC with his company, and was granted that. Does that filing protect him from things that happened before his company became a LLC?

Asked on October 22, 2017 under Employment Labor Law, South Dakota


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

No, an LLC only affects, or protects from, liability incurred from the moment the LLC is created forward. Creating an LLC has no retroactive effect. So if he breached his contract with you, took your money without doing all the work, did sloppy or negligent work, etc., if when he did those things was before the LLC, the LLC does not help him.

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