If I form a LLC, will it it help cover me from the time I opened or from the formation date?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I form a LLC, will it it help cover me from the time I opened or from the formation date?

I had a tire business for a year and had to close due to lack of finances. I had a 2 year lease and the people are threatening garnished wages and sale of property to cover the debt. I was told that if I form a LLC it will help protect me and my family from this. I this true?

Asked on January 28, 2012 under Real Estate Law, Virginia

Answers:

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

Answered 12 years ago | Contributor

Forming the LLC for the business now will not protect you from a suit as I am sure that you signed the lease personally.  If you were thinking of forming an LLC and transferring your assets in to it to protect your personal assets, that may be a problem too as a creditor can try and set aside the transfer as fraudulent or to avoid payment or judgement.  I would go and speak with a lawyer to help you here.  Can you negotiate a settlement?  See if they have an obligation to mitigate damages by re-letting the property.  Don't wait for the other shoe to drop. It is no way to live.   Good luck.


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