How easy/difficult is it to sue an LLC and what might that incur?

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How easy/difficult is it to sue an LLC and what might that incur?

My husband went into business with his brother and his brother friend 4 years ago. I will call them partner 1 (my husband 5% owner) partner 2 (husbands brother 65% owner) and partner 3 (the brothers friend 30% owner). About two years into the business, it came to partner 1 and 2’s attention that partner 3 was stealing from the company and he was let go. New accounts were opened to prevent partner 3 from accessing any money however he had stolen checks and wrote a check to a contractor for apprx $4500 on the closed account. The check was cashed at a check cashing location and now 3 years later the check cashing place is trying to see the company.

Asked on June 3, 2013 under Business Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

It is no more difficult to sue an LLC than it is to sue a natural person.

The point of an LLC, though, is that it protects the members from the LLC's debts; they are not responsible for amounts it owes (such as after a lawsuit) except in limited circumstances, such as if those members  personally did anything wrong (e.g. intentionally bad or negligent/careless) which would support liability directly against them.

 


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