If an LLC is sued and I own the LLC, can I be sued as an indiviual?

UPDATED: Sep 16, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 16, 2012Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If an LLC is sued and I own the LLC, can I be sued as an indiviual?

Asked on September 16, 2012 under Business Law, Tennessee


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

As a general matter, no: the owner (or any member) of an LLC is not liable for the debts or obligations, including those resulting from lawsuits, of the LLC. There are some exceptions, however:

1) If you personally did the wrongful act resulting in the lawsuit, you could be sued for your personal role (for example: you drove the company car that ran someone over; you made defamatory comments about a competitor).

2) If it's liability for a fiduciary tax (e.g. sales tax; certain payroll taxes), as the person at the LLC reponsible (presumably) for paying them, you could be liable.

3) If you personally guaranteed any loans or other debts, you could be liable for those to the extent of your guaranty; in this vein, note that the holders of "business" credit cards are generally liable for them.

4) If it is determined that the LLC is basically a fraud, used to defraud creditors, and doesn't really have an independent existence, then sometimes (very rarely), creditors can "pierce the corporate veil" and hold the owner(s) liable.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption